Legal & General launches FTSE Growth Plan 10

Legal & General has announced the launch of FTSE Growth Plan 10; a structured capital at risk product, which offers investors the potential for a fixed bonus payment of 45% of the initial investment at the end of its five year term.

FTSE Growth Plan 10 offers 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 14 July 2016.

Legal & General Savings' Head of Business Development, James Harrington said, "With the prospect of continuing low interest rates, the ‘soft protection' or capital at risk product market is attracting investors who, for an element of their portfolio, are seeking potentially higher returns than they would be able to achieve through cash based investment alone.  This new breed of more cautious investor is aware of issues such as counterparty risk and is prepared to accept part of the risk of investment in equities, through a link to a recognised index such as the FTSE 100 Index, in return for potential growth that is linked closer to the performance of equities than it is to cash"

FTSE Growth Plan 10 will be available for investment until Friday 24 June.

The investment is structured to offer investors a bonus of 45% if the Final Index Level at the maturity date (14 July 2016) is at or above the Initial Index Level (14 July 2011).  If the Final Index Level at the maturity date has fallen by less than 50 per cent of the Initial Index Level investors get their original investment back but no bonus.

There is the potential that some or all of the original investment may be lost - If the Final Index Level at the maturity date has fallen by 50 per cent or more of the Initial Index Level 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 this plan. This investment does 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 a stocks and shares ISA, ISA transfer or through direct investment (the closing date for ISA transfer applications is 10 June to allow time for completion of transfer before the offer close date).

For new ISA applications clients can invest up to £10,680 for the 2011/2012 tax year. There is no limit on ISA transfers.

For more information, visit landgstructuredproducts.com.