Popular Defensive Plan: Potential 5.80% growth each year, even in a falling market…
Do you think the FTSE 100 will have fallen by more than 15% in six years’ time? If no, but you are also looking to include a defensive feature in your investment (i.e. returns even if the stock market does not go up), then this defensive growth plan from Meteor is worth a closer look.
The plan offers to end early or ‘kick out’ and return your initial capital plus 5.80% growth for each year invested (not compounded), provided the level of the FTSE 100 Index is above the required level at the end of each year. The required level starts at 100% of its starting value at the end of year 2, then reduces gradually down to 85% in the final year.
If the FTSE is below the required level each year, no growth is achieved and your original capital will be returned, unless the FTSE 100 Index has fallen by more than 35% at the end of your investment. If it has, your initial capital will be reduced by 1% for each 1% fall, so your capital is at risk.
If you are questioning the UK’s medium to long term growth prospects, a defensive plan such as this could be an attractive opportunity.
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: 5.80% for each year invested (not compounded), if the FTSE is above required kick out level
Required kick out level reduces from 100% to 85% over the term
Alternative option also available with a lower capital at risk barrier, returning a potential 5.25% pa
Capital At Risk Product – 65% barrier
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: 14 September 2021
Direct & ISA Applications: 28 September 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.