Supertracker plan offering 10x the rise in the FTSE after 6 years…
With the recent market drop this new plan from MB could offer a long term investment for those who are confident that the FTSE will have risen in 6 years time.
A ‘supertracker’ plan tracks the performance of the stock market (in this case using the FTSE 100 Index) between the start and end dates of the plan, and then multiplies any growth by a number known at the outset, in this case by ten. Therefore, if the FTSE rises by 2%, you receive 20% growth, by 3% and you get 30%, and so on, with the maximum return available capped at 48%.
If the FTSE 100 is lower at the end of the term, no growth is achieved. At that point your initial capital will be returned in full, unless the Index has fallen by more than 35%. If it has, your capital will be reduced by 1% for each 1% fall, so your capital is at risk.
If you think the stock market is likely to go up in the coming years, the MB UK Supertracker Plan could be an attractive proposition as you know at the start that if the FTSE rises you will receive 10 times any growth.
10 x FTSE 100 Index growth (capped at a maximum return of 48%)
Capital At Risk Product
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: 6 Years
Arrangement fee applies
Minimum single investment: £5,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 13 January 2021
Direct & ISA Applications: 27 January 2021
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.
Important Information: This is a structured investment plan which is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.