Ninth growth plan from Legal & General
Legal & General has announced the launch of FTSE Growth Plan 9; a structured capital at risk contract, which offers investors the potential for a fixed bonus payment of 45% of the initial investment at the end of its five year term.
Capital is not protected with this plan.
FTSE Growth Plan 9 will pay a bonus of 45% as long as the final FTSE 100 Index level is equal to, or better than, the initial FTSE 100 Index level at the investment start date and provided the plan is held until maturity, which is 19 May 2016.
Legal & General Savings' Head of Business Development, James Harrington said, "It is generally accepted that equity investment offers returns greater than inflation over the long term but the volatility of the stock market puts off many investors who place a high value on preserving capital. With inflation predicted to rise to 5%*, and the prospect of continuing low interest rates, the ‘soft protection' or capital at risk product market is attracting cautious investors who are prepared to accept part of the risk of investment. This is our ninth product in our FTSE Growth Plan series, which we believe is likely to appeal to investors who are seeking the potential for higher returns than they can achieve through traditional deposit accounts."
FTSE Growth Plan 9 will be available for investment until Thursday 28 April. The investment is structured to offer investors a bonus of 45% if the Final Index Level1 at the maturity date, which is 19 May 2016, is at or above, the Initial Index Level1.
If the Final Index Level1 at the maturity date has fallen by less than 50 per cent of the Initial Index Level1 investors get their original investment back but no bonus.
If the Final Index Level1 at the maturity date has fallen by 50 per cent or more of the Initial Index Level1 investors will get back less than they originally invested and would lose 1 per cent of their money for every 1 per cent the FTSE 100 Index is lower than its starting level.
This plan is not suitable for investors unable to remain invested for the full fixed term period and capital is not protected with these plans. These investments do not take account of dividends that would be available through holding shares directly in the companies that make up the FTSE 100 Index.
The minimum investment is £3,000 and the investment is available as an ISA, ISA transfer or through direct investment (the closing date for ISA transfer applications is 15 April to allow time for completion of transfer before the offer close date).
The offer period spans two tax years. So investors can use their ISA allowance, where available, from both the 2010/2011 (£10,200) and 2011/2012 (£10,680) tax years to invest up to £20,880 before the close on 28 April. The last date for ISA applications for the 2010/2011 tax year is 5 April while the closing date for ISA applications for the 2011/2012 tax year is 28 April.
Commission is 3 per cent of the sum invested. No commission is payable on switches from other Legal & General investments. Full details of FTSE Growth Plan 9 are available on Legal & General's dedicated adviser website, landgstructuredproducts.com.