Legal & General has issued its latest structured product offering, designed to pay 100 per cent of any capital growth in the FTSE 100 over its fixed term of five and a half years.
Maturing on December 23, 2009, the index growth and protection plan 2 offers capital protection as long as the investment is held for the entire term.
It is aimed at cautious investors who want to benefit from the growth of equities but don't want their savings exposed to the full vagaries of the open markets.
The only circumstances in which investors' capital is not protected would be if the financial institutions with at least an 'A' financial strength rating from Standard & Poor's in which the money raised through the plan is invested were to default on their payments.
Minimum investment is £500 with no maximum unless invested through an Isa-wrapper.
Retail investments marketing director Claire Stracey says: “Investors have the comfort of knowing that their capital is protected and yet benefit from any growth in the FTSE 100 Index when this investment matures.”