Manor Park has introduced a new tranche of its guaranteed UK capital growth fund to replace its earlier tranche, which has just matured.
This Guernsey-based closed-ended umbrella fund is linked to the FTSE 100 index during a five-year term. Investors are guaranteed a return of 110 of their initial investment no matter how the stockmarket performs. If the FTSE 100 rises between December 15, 2000 and December 15, 2005, investors will also get a return of 70 per cent of the average growth in the index.
Guaranteed products have become popular with investors who are looking for low-risk investments, particularly because of recent stockmarket volatility.
They may be suitable for people who are trying to build a nest egg before retirement or investors who are not happy with the interest rates available on building society accounts.
Some products guarantee a return of the original capital only if stockmarket levels perform well or the index does not dip below the starting level. This product rates highly in that investors are guaranteed to get 110 per cent of their original investment, which gives them 10 per cent return whatever happens to the FTSE 100 index.
According to FTSE, the FTSE 100 index rose from 3541.641 points on November 9, 1995 to 6442.19 points on November 9, 2000.