Written by Oliver Roylance-Smith
21st September 2018

Top 10 Reasons To Consider Kick Out Investment Plans

Investment kick out plans pay out a defined return provided a predefined event takes place. This event is based on the performance of an underlying investment, which is often the FTSE 100 Index.

They offer both capital protected and capital at risk opportunities, and as such have become popular with both savers and investors. Since they are also popular in a wide range of stock market conditions.

This week we give you our Top 10 reasons to consider this type of plan.

  1. Potential for high growth: some plans offer double digit returns
  2. Early kick out opportunity: from as early as 12 months
  3. Regular kick out opportunity: usually every year
  4. Potential to beat the market: investment returns even if the market stays relatively flat
  5. Defensive plans: some offer investment returns even If the market goes down slightly
  6. Linked to the FTSE 100 Index: widely recognised stock market to UK investors
  7. Conditional capital protection: some capital protection from a falling market
  8. No annual charges: unlike most investment funds
  9. Capital protected options:with FSCS protection
  10. Define return, defined risk: know exactly what has to happen to achieve the headline returns on offer

As you can see there are a number of features which might be appealing and each plan is structured differently from a number of different providers, allowing the investor plenty of choice.

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Important Information: Structured investment plans are not capital protected and are 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.