Legal & General offer new guaranteed growth plan
Legal & General's new capital protection product , offering a minimum of 26 per cent, will offer be available from November 1st 2004.
15:46 28 October 2004
Legal & General's new capital protection product , offering a minimum of 26 per cent, will offer be available from November 1st 2004, the insurer has announced.
New research commissioned by L&G last month shows that investors remain cautious about the continued uncertainty in equity markets and are looking for "protected" returns over and above that which may be expected from a typical deposit account.
The Protected Capital and Growth Plan offers a stock market linked investment that pays a minimum of 26 per cent return regardless of whether the FTSE 100 Index rises or falls.
In cash terms, based on an initial investment of 7,000, investors could expect to see at least 8,820 paid out at maturity even if the FTSE 100 Index falls.
The minimum investment is 500. The maximum investment for Maxi ISAs is 7,000 and for Mini stocks and shares ISAs 3,000. There is no limit for PEP/ISA transfers and direct share investment.
The investment does not take account of dividends that would be available through holding shares in the FTSE 100 Index directly.
Legal & General's retail investments marketing director, Claire Stracey, said: "Our research shows that cautious investors rate 'protection of capital' and 'a fixed return' top on their investment intentions list in the current climate.
"Protected Capital and Growth Plan provides investors with a minimum return of 26 per cent at maturity.
"This is equivalent to 3.9 per cent (net) a year for six years, a rate that matches most current bank or building society deposit accounts.
"Plus, if the FTSE 100 Index rises strongly the potential for growth could be far greater than for deposit based savings."