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HSBC offers early release triggers on FTSE plan

HSBC is offering a structured product linked to the FTSE 100 which features a series of early release triggers which return investors&#39 full capital plus growth after three or five years.

The capital and growth plan offers investors 100 per cent growth in the FTSE over six years, with the final return based on the average level of the index over the final 12 months.

But if the FTSE has grown by 21 per cent or more by its third anniversary, the plan will close, with investors getting full return of capital plus 21 per cent.

If the index rises by 55 per cent by the plan&#39s fifth anniversary, investors will automatically get back their original investment with a payment of 55 per cent.

With no downside, capital return is guaranteed as long as the Standard & Poor&#39s A-rated financial institutions backing the plan do not default. Movements in the FTSE only impacts growth.

Minimum investment is £3,000. Commission is 3 per cent. The plan, which is available for Isa and Pep transfers, opens on May 27 and closes on July 18. The start date is July 23.

Intermediary business managing director Jonathan Polin says: “The market is awash with structured products but this is a good structure from a well regarded brand.”

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