Norwich Union is launching a high yield corporate bond fund with an estimated yield of 8 per cent.
The Higher Income Plus Fund is set to meet Government Cat standards with no initial charge and only a 1 per cent annual management fee.
The minimum investment is £50 a month for regular savers or £500 for lump sums.
Initial IFA commission is 3 per cent with 0.15 per cent renewal.
Norwich Union Investment Funds director of sales and marketing Mark Skinner says: "This launch of our ninth Cat standard fund is proof that the fund management industry can offer the investor absolute value for money by avoiding high charges, which can be particularly damaging in a low inflationary environment."