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Julian Gibbs

Keydata has introduced an exciting new investment called the dynamic growth plan which should appeal to all stockmarket investors as well as to conservative and realistic ones who are risk-averse.

It offers double the return on the FTSE 100 Index performance capped at a maximum investment return of 80 per cent, that is, twice a 40 per cent rise, over a five-year period with full capital repayment unless the FTSE 100 falls by more than 50 per cent and does not recover to at least its starting level over the five years.

Furthermore, the benefits are payable tax-free for Isas and Pep transfers. The capital repayment is virtually certain, unless the whole world economy collapses, because it is highly unlikely that the FTSE 100 will fall to around the 2,000 level and not recover over the next five years while the upside on the FTSE 100 Index is unlikely to go up by more than an average of 6 per cent, 8 per cent a year over the next five years, this plan is offering a potential of over 12 per cent a year on rise of only 40 per cent in the index (a rise of about 7 per cent a year).

A direct investment into the plan is also sensible in that it can use up individual capital gains tax allow-ances which, together with taper relief, enables a couple to make tax-free gains of up to £9,058 each at current exemption levels. The capital gains tax allow-ance rises with inflation so, in all probability, gains of up to £10,000 a year will be tax-free so each person could invest up to an extra £12,500 with the likelihood of paying no tax at all and with potential gains of an extra £10,000 tax free each.

This plan gets a rating of nine out of 10 for higher-rate and basicrate taxpayers from the independent analysts Future Value Consultants, the highest rating of any plan currently available.

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