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.