View more on these topics

Julian Gibbs

The stockmarket-linked product which currently receives the highest rating from independent analyst Future Value Consultants is the Nvesta Triple Tracker plan. It is rated 9.25 out of 10 both for higher-rate and basic-rate taxpayers, who can invest in it via an Isa or directly to take advantage of capital gains tax allowances.

This plan gives a return of three times the growth in the FTSE 100 index over a five-and-a-half-year period up to a maximum of 75 per cent, with full capital security provided the FTSE 100 does not fall by more than 50 per cent during the term.

This deal is far better than a tracker fund, unless the index rises by more than 75 per cent including reinvested income over the period. This plan will return the full 75 per cent if the index rises by only 25 per cent or 4.14 per cent a year over the five-and-a-half-year term.

If the index fell by, say, 40 per cent, the tracker fund would only return 60 per cent plus reinvested income whereas this plan returns 100 per cent.

Nvesta has also launched the Dual Advantage plan, again highly rated by FVC, which gives a guaranteed return of 42 per cent, even if markets fall by up to 50 per cent over the period.

If the FTSE 100 fell by 40 per cent, the market value of a tracker fund would only be 60 per cent plus reinvested income compared with the investment return of 142 per cent on this plan.

All investors in equities should consider one of these plans unless they believe that the FTSE 100 will rise by more than 10 per cent a year over the period. Investors who expect a modest rise in the FTSE100 should choose the Triple Tracker plan and those who fear it may fall should use the Dual Advantage plan.

These attractive plans are strong buys and a much better bet than all UK tracker funds.

Recommended

Split-cap &#39spider&#39s web&#39 is biggest FSA probe

The FSA says its enforcement division has significantly widened the scope of its investigation into possible collusion between companies in the split-capital investment trust sector. Speaking at the AITC conference for directors in London this week, FSA managing director John Tiner said the FSA had stepped up the initially small investigation to encompass many more […]

Name change for Namba in bid to attract loan advisers

The National Association of Mortgage Brokers and Advisers is renaming itself the Association of Mortgage Intermediaries. The name change follows Namba&#39s alliance with the Association of IFAs last August. It has also secured funding from the Council of Mortgage Lenders and the backing of the Intermediary Mortgage Lenders&#39 Association for the first time this week […]

Standard smoothing shock

Standard Life is to stop smoothing except on maturity and will not be paying terminal bonuses on shorter contracts as its slashes with-profits payouts by up to 15 per cent. The company is warning that payouts will continue to fall over the next year and it will start making bonus declarations every three months, starting […]

Simple saving

The Pensions Green Paper might have been disappointing but the same cannot be said of the proposals for tax simplification, launched in a simultaneous consultation paper. Consider the joint objectives: •Providing choice for everyone by simplifying the structure and removing the mystique born of years of legislative “tinkering”. •Increase protection for members of occupational schemes, […]

IHT: What were you doing in 2009?

One of the best sources of new business is your existing clients and, if they are estate planning clients, regular reviews are needed because people’s inheritance tax (IHT) problems tend to only get worse. Now, not a lot of things remain at the same rate as in 2009. If we turn the clock back, it […]

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