Defensive Growth Plan: 7% per year, even if the FTSE falls by 10%…
Most plans that offer the opportunity for a growth return even if the FTSE 100 falls, still make you wait at least three years before the FTSE level required is below its level at the start of the plan. This plan from Walker Crips however, offers to kick out from year 2 onwards, even if the FTSE has fallen by up to 10%.
The UK 90% Annual Kick Out Plan has a maximum term of 8 years, but will mature early (‘kick out’) at the end of each year from year 2 onwards, provided the FTSE has not fallen more than 10% below its value at the start of the plan. If it kicks outs, you receive 7% for year invested, along with a return of your initial capital.
If the Index has fallen more than 10% at the end of each year no investment growth is paid, and your initial capital is returned in full unless the Index has fallen by more than 35% at the end of plan. If it has, your capital will be reduced by 1% for each 1% fall, and so your capital is at risk.
For those investors who want the opportunity to secure a good level of growth, in as early as 2 years, even if the FTSE has fallen up to 10%, this plan could offer a compelling option.
Potential Return: 7% for each year invested (not compounded), unless the FTSE drops by more than 10%
Potential to mature early (kick out) each year from year 2 onwards
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 8 Years
Arrangement fee applies
Minimum single investment: £10,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 20 May 2022
Direct & ISA Applications: 3 June 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.
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.