View more on these topics

Julian Gibbs

The best growth plan yet in current stockmarket conditions is being launched shortly by NDF in conjunction with Abbey National Treasury Services. Called the Double Growth Plan 1, it pays out double the rise in the FTSE 100 index over a five-and-a-half-year period, with a maximum return of 200 per cent.

Full capital repayment is made, unless the index falls by more than 50 per cent during the investment term and fails to recover. While full capital repayment is not guaranteed, it is highly unlikely that the FTSE 100 will fall by a further 50 per cent or more. Furthermore, the FTSE 100 only has to rise by around 7.5 per cent a year for investors to receive the full return, whereas with a direct investment in a tracker fund they would have to get a return of over 13 per cent a year including reinvested income.

Most forecasters expect equities to rise from their current low levels by around 7 to 8 per cent during 2003, despite the possibility of war in Iraq.

Percival Stanion, head of asset allocation at Barings, for example, expects that a gentle economic recovery could lead the way to equities growing by 8 per cent.

The highly respected economics commentator at The Times, Anatole Kaletsky, thinks that 2003 will be a respectable year for most equity markets.

Despite the three-year fall in the FTSE 100, it has achieved an average return of over 7.5 per cent a year over the past 10 years and, from current levels, I expect it to return to this average over the next five years or so.

In my opinion, any growth investor who is prepared to invest for five-and-a-half years should invest in this plan in preference to any tracker fund. NDF also offers a 7 per cent a year income alternative with the same 50 per cent downside protection.

Recommended

The industry must be freed from its regulatory shackles

Open letter to Treasury Financial Secretary Ruth KellyI am a retired IFA. I and about 500 others helped form the Life Insurance Association, played an active role trying to get North American-type regulation introduced and was at one time a member of the Labour City committee. I was a trade union official and was briefly […]

Forecast of turbulence

There was a letter in the Daily Telegraph early in the new year pointing out that the name of the Metropolitan Police commander in charge of the Hackney siege – the longest in London&#39s history — was B Quick. Sadly, no such ironies exist in politics. Our Work and Pensions Secretary resides under the dramatically […]

Clock watching

In the next couple of articles, I will be looking at the use of mortality tables by financial planners. Not, on the face of it, a terribly exciting subject but I hope to convince you that it is a crucial area of technical knowledge and understanding which is badly overlooked in our examination syllabus. Just […]

Mark Howard

After 18 months&#39 enforced layoff from financial services, Mark Howard, the former managing director of Maddison Monetary Management, aims to mark his comeback with a bit of a splash. Just back from his honeymoon sailing the BVIs (that&#39s the British Virgin Islands to you and me), Howard is aiming to push the boat out in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com