Defined Returns Plan

megpotts

Does anyone know anything about this plan?My financial advisor has suggested it to me,there are some questions I need to ask him,but his office is closed,presumably until after the new year.I have read and reread the info he sent me but I am not the sharpest knife in the box when it comes to financial jargon.
MegP

Milarky

Just a quick google suggests it is simply a Barclay's guaranteed equity bond (GEB) - just a play on the usual weasel words...

http://www.barclaysstructuredproducts.com/definedreturnsplan.asp

'Defined' is being used here as a qualifier. 'Guaranteed' in GEB parlance simply means you will receive no less than the capital you put in. 'Defined' means you could receive a certain return on top of your capital if the FTSE (or whatever) is higher at the end than the beginning.

dunstonh

You wont find much support for Guranteed Equity Bonds here (to give them the correct generic name).

They are designed to be sold by low skilled advisers to low knowledge customers. Every now and then a good one does come along but they are in the minority. However, in general they are expensive and limited. Although the charges are implicit and you cant see them which allows poor quality advisers to say there are no charges on the plan as a selling point.

If capital security is a concern, there is a way to improve your potential and take a realistic level of risk and effectively build your own GEB (with an IFA's help if you cant DIY).