Aviva launches tranche of Guaranteed Fund

Aviva is launching a tranche of its Guaranteed Fund. The fund - which this year celebrates its 15th anniversary - is designed to provide capital growth and guarantees that the value at the 5th anniversary will be no lower than the original investment, less any withdrawals.

The £1.95bn fund was launched in October 1995 and invests in a mix of UK and international equities, bonds, property and cash. It is available exclusively through the Aviva Portfolio investment bond and the asset mix is 17% equities, 5% property, 75% fixed interest and 3% cash.

Richard Kelsall, head of investment propositions at Aviva, said: "The Aviva Guaranteed Fund is very popular with cautious investors who face low returns from deposit accounts, are attracted by potentially higher returns from equities and property but who also want to protect their investment.

"The fund has given almost 300,000 investors peace of mind through two severe bear markets in the last 10 years, is simple to understand and comes with a cast-iron money back guarantee from Aviva."

The guarantee applies on the fifth anniversary. If money is taken out before that date, the customer may not get back the amount invested. The charge for the guarantee for the first five years is an extra 0.5% a year on top of the Portfolio bond's charges.

Investors also have the flexibility to switch in and out of the fund at anytime enabling them to ‘lock in' any gains. The fifth anniversary guarantee will start again from the date they switch back into the fund.

For more information, visit aviva.co.uk.