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Insight presents the right attitude

Insight Investments has designed the Insight investment growth plan, which has two options catering for different attitudes to risk.

The accelerated growth option gives investors ten times the growth in the index up to a maximum of 50 per cent. For example, if the index rises by 5 per cent, investors will come away with 50 per cent growth and will still get 50 per cent growth if the index rises by 35 per cent. However, if the index has grown by more than 50 per cent during the term, investors will get all this growth on a one for one basis.

A full capital return will be provided unless the index falls by 40 per cent or more and does not recover to at least its starting level by the end of the term. If the index falls beyond 40 per cent and does not recover, capital will be reduced by 1 per cent for every 1 per cent fall in the index.

The capital protected option is designed for more cautious investors who do not want to jeopardise their capital. This option offers a full capital return regardless of the index performance plus all the growth in the index on a one for one basis. However, there is an early maturity feature which kicks in if the index has grown by 30 per cent or more at the third anniversary. If this happens, the bond will mature leaving investors with 30 per cent growth on top of their original capital.

This structured product&#39s use of two options with different criteria to determine the level of return, including an early maturity trigger, make this one of the more complicated products on the market and this could put off some investors who value capital protection.

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