HSBC has joined the small number of companies offering a capital-protected
Isa. HSBC Safety.net is aimed at the risk-averse investor who is looking
It invests in a portfolio of 20 technology companies, including Microsoft,
Siemens, Yahoo and Toshiba. Investors' capital is protected with a
guarantee that, even if the shares of all the companies fall below their
starting level, a minimum of 90 per cent of capital is returned.
Despite the recent market corrections in the Nasdaq 100 index and
the threatened break-up of Microsoft, HSBC feels the sector still has a lot
of growth potential and that the technology boom will continue over the
Capital-protected Isas are not common and many investors will welcome the
benefit of having a degree of protection. However, recent market
corrections have shown that the technology market could be overvalued and
that this is an area of volatility.