NDF Administration has introduced the technology plus plan, a capital protected investment that is linked to the Nasdaq-100 index.
The plan is available as an individual savings account and as a personal equity plan transfer. It aims to produce capital growth of 232 per cent, which includes the return of the original capital, by the end of its five and a half year term. Investors' original capital will be returned in full, no matter how the Nasdaq-100 performs.
The level of the Nasdaq 100 index is measured every six months and the results are added together to produce the final return. Unlike some capital guaranteed investments which only measure the starting level and final level of the relevant index, technology plus will be affected by every movement of the index during the term.
Although the Nasdaq 100 has fallen by more than 60 per cent since March 2000, investors could benefit from an upturn in the index. However, cautious investors who tend to go for capital protected investments are not usually drawn to technology, which is a risky sector more usually associated with adventurous investors. This means technology plus could have a problem in finding investors that straddle both camps.
The Nasdaq 100 index rose from 593.530 points on October 27, 1995 to 1810.470 points on April 27, 2001.