View more on these topics

M&G introduces second protected Isa

M&G has introduced its second protected Isa The M&G Protected ISA, adding to the small but growing number of these products.


The M&G protected Isa can be a mini or a maxi Isa and will run for five years, tracking the FTSE 100 index. It is aimed at two different types of investors. Firstly, it is targeted at novice investors, who have not invested on the stockmarket before and who are cautious about risking their capital. Secondly, experienced investors approaching retirement who are looking for a secure place to put their money.


Investors who keep their funds in the Isa for the full five years will receive up to 100 per cent of any growth in the FTSE 100 index, subject to a maximum amount of 61 per cent of their original investment. In the event that the FTSE 100 does not rise over the term then investors will at least get their original investment back.


The capital protection element will appeal to many investors, as will the potential for 100 per cent of the growth in the FTSE 100. However similar funds, such as the Abbey National safety plus growth Isa, work in a slightly different way, allowing up to 60 per cent growth in the FTSE 100 index subject to no maximum percentage of the original investment. Although M&G has turned this around, the end result is that the product works in a similar way to its competitors.


Over a five year period the FTSE 100 index grew from 3515.9 points on August 23, 1995 to 6566.24 points on August 23, 2000.

Recommended

With Friends like this…

A client of ours recently increased his regular monthly contributions to his Friends Provident personal pension.Quick as a flash, our local Friends Provident office churned out an illustration based solely on the additional contributions, the main function of which is to let the client know just how much commission the additional contributions will generate.As a […]

Over half of IFA lenders sign up for Assuresoft&#39s online mortgage service

Assuresoft claims its new mortgage service has won the backing of more than half the mortgage companies lending through IFAs.It says Alliance & Leicester, Bank of Ireland, Bank of Scotland, Halifax, The Mortgage Business, Northern Rock, Scottish Widows, Standard Life Bank and Woolwich have all signed up to its Assureweb mortgage service.The mortgage-sourcing tool for […]

ScotMut sends out stakeholder action packs

Scottish Mutual is issuing a comprehensive marketing pack to more than 5,000 IFAs to help them prepare for stakeholder.The Time for Action pack promotes Scottish Mutual&#39s pre-stakeholder Universal pension contract and contains the information IFAs need to understand the Government&#39s current stakeholder proposals.The pack advises IFAs on setting up and running stakeholder schemes and also […]

Bullhound enters market with global technology fund

New offshore investment company Bullhound has entered the market with a global technology fund available to websurfing investors.The fund, which allows individuals to run their investments on the internet, is a Luxembourg domiciled SICAV and is aimed at experienced investors. Mainly those who are looking for growth as well as exposure to the technology market.Global […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment