10.5% growth for each year, even if the FTSE rises by only a single point…
With the recent volatility in the markets this could be an uncertain time in the investment climate. If you’re not confident the FTSE 100 will rise significantly, but would like to achieve high growth returns even if it only rises a little, Meteor’s FTSE Kick Out Plan may be worth a closer look.
The plan has a maximum term of seven years, but will ‘kick out’ provided the level of the FTSE 100 Index at the end of any year is the same or higher than its value at the start of the plan, from year 1 onwards. If it is, then you will receive 10.5% for each year invested (not compounded), plus your initial investment back.
If the Index is lower at the end of every year, no growth return is achieved and your initial capital is returned in full unless the FTSE 100 has fallen by more than 35% at the end of the plan. If it does your capital will be reduced by 1% for each 1% fall, so there is a risk you could lose some or all of your initial investment.
An alternative option is also available with a lower capital at risk barrier of 40%, which returns a potential 10% pa.
So not only does the plan offer some capital protection against a falling stock market, but also the opportunity for as much as 10.5% growth in as little as 12 months.
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.
Potential Return: 10.5% for each year invested (not compounded), if the FTSE rises by any amount
Potential to mature early (kick out) each year from year 1 onwards
Capital At Risk Product – 65% barrier
Alternative option also available with a lower capital at risk barrier, returning a potential 10% pa
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: Maximum 7 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: 28 June 2022
Direct & ISA Applications: 12 July 2022
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.