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Julian Gibbs

Nvesta has come up with three top-class products, two giving high growth potential with very low risk and an income product offering 9 per cent a year with a little more risk.

The first product, the Quad tracker plan, gives four times the rise in the FTSE 100 over six years, subject to a maximum return of 80 per cent. This is equivalent to 10.3 per cent a year, much higher than most investment analysts are forecasting.

The second plan, the Supertracker 30 plan, gives the greater of 30 or 100 per cent of any rise in the FTSE 100, with no maximum. This plan seems to offer the best of both worlds in that the return is virtually certain to be 30 per cent, about the same as an average building society investment, while, if the FTSE rises beyond 30 per cent, investors will enjoy the full rise.

Full capital is returned on both, provided the FTSE 100 does not fall by more than 50 per cent.

The FTSE Focus 2 plan offers 9 per cent a year over three years and two months and is also linked to the FTSE 100. But it has a lower downside protection of 25 per cent, excluding the first year where it can fall by any amount without affecting the return on the plan. In current circumstances, this is an outstanding product and it is difficult to find an income of 9 per cent elsewhere with such low risk.

Furthermore, as a Dublin-based product, basic-rate taxpayers pay only 10 per cent tax and higher-rate taxpayers only 32.5 per cent.

With the Iraqi situation likely to be resolved soon, confidence will return and markets are more likely to go up than down.

I like all these products. Cautious growth investors should go for the Nvesta Quad tracker plan while more optimistic growth investors should go for the Supertracker 30. All realistic investors requiring income should consider the FTSE Focus 2 plan.

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