For clients who believe the FTSE 100 Index is reasonably cheap at present, following all the recent market upheaval, and would consider directing some free capital towards it, but don't wish to expose the capital to any downside risk, then perhaps this is for you.The Norwich Union Capital Protected Plan is a 3 or 6 year fixed term plan. It offers 100% capital protection if held to maturity and is available until 5th August 2008. Investments can take the form of direct investment, ISA's or SIPP funds. Direct investments are subject to income tax on the gain on encashment. Investors will get back a return linked to the FTSE 100 index with every 1% growth the FTSE 100 achieves over the term of the plan, growing at 2.5 times that rate, up to a maximum of 24% growth for the 3 year plan and 60% growth for the 6 year plan.
It is a way of investing in the stockmarket indirectly without the risk. Money will be pooled together with the money of other investors to purchase a medium term note from a AA rated institution. A medium term note is a promise to provide the return outlined in the agreement between Norwich Union and the Note's issuer.
Investors have to be aged 18 or over and the minimum invest is £1,000. If this is of interest to you please contact us for further details
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