Scottish Widows launches new Capital Protected Fund

In an environment of falling cash interest rates and ongoing market volatility, Scottish Widows has launched a new competitive Capital Protected Fund 10 (CPF10) following the success of CPF 9. With a cash investment period from 4 February up to 11 June 2009 (subject to availability), this fund is ideal for cautious investors who are able to leave their money invested for 6 years.

Research from the third annual Scottish Widows Saving & Investment Report reveals that an element of capital security is key to giving savers piece of mind in the current environment. 17% of the UK currently invest in stocks and shares ISA's, and research shows that the number of those investing would double in the next tax year if people thought they would not lose their money (17%). Furthermore, over a quarter (28%) plan to save in low risk investments and over a third (38%) would save more if returns were guaranteed. The Capital Protected Fund therefore meets savers needs; protecting capital at a time where savers are more worried about losing their money.

The term of the product is six years with capital 100% protected, if held for the full term, and 150% participation in the performance of the FTSE 100. The cap on growth is 50% of the original investment. It is designed for those savers seeking growth but who also want capital security.

Gordon Greig, head of Savings & Investment at Scottish Widows, said: "Our new Capital Protected Fund is ideal for those who want to benefit from the potential upside of the stock market, but would like the peace of mind of knowing that they will be protected if the FTSE index falls. Those who have the cash to invest over 6 years should benefit from this savings vehicle, with the potential to earn a higher return than a conventional deposit account. Developing a habit for saving is key for people that want to ensure they put enough money aside for any eventuality. We have launched this product to encourage those who want to save but don't want unnecessary risk; an element which is clearly very important to savers in the current economic climate."

The Capital Protected Fund is available as an OEIC investment or as an ISA providing the further advantage of a tax efficient environment in which to grow. The minimum investment amount is £3000, and maximum is £250,000 in an OEIC and £7,200 in an ISA. The Capital Protected Fund is available through Lloyds TSB branches, direct from Scottish Widows or through Independent Financial Advisers.