Manor Park has introduced the three-year guaranteed UK selected growth fund.
Aimed at the cautious medium-term investor who is looking for growth, the fund is an investment trust that is guaranteed to return the investors original capital at the end of the three year term.
Investing in the FTSE 100 index, the fund is designed for investors who have different attitudes to risk and returns and who want to set their own level of protection. Those who are very cautious can choose to guarantee 100 per cent of their original capital and take 60 per cent of any growth in the fund. Less cautious investors can choose to protect either 95, 90 or 85 per cent of their original capital, taking 95, 130 or 165 per cent of the growth respectively.
Even if the FTSE 100 falls in value then investors will get at least their chosen level of protection back.
Manor Park has introduced the fund as a part of pair of guaranteed select funds, the other fund being the five year guaranteed UK capital growth fund. As a result the three-year fund is slightly more risky than its five-year counterpart, as its shorter term makes it more vulnerable to any stock market volatility. However its capital guarantee will make it attractive to people who want to invest in the stockmarket, but who have been put off by recent volatility.
Over a three year period the FTSE 100 index went from 5,969 points on May 8, 1998 to 5,892 points on May 8, 2001.