Scottish Widows capital protected fund

hostertlady

Just a thought- If you were going to invest your money on the stock market, would you want your investment protected??

Scottish widows have one and you have to keep your money in for 6 years= so there's a chance you might not actually gain anything. depending on the stock market, but your initial investment is protected so do do not lose it.. but with the stockmarket low at the moment you could be quids in at the end of it..

cottager

hostertlady wrote: »

Just a thought- If you were going to invest your money on the stock market, would you want your investment protected??

Scottish widows have one and you have to keep your money in for 6 years= so there's a chance you might not actually gain anything. depending on the stock market, but your initial investment is protected so do do not lose it.. but with the stockmarket low at the moment you could be quids in at the end of it..

For Scottish Widows I don't know, but I expect others will.

But FWIW in 2000 I put £5000 into what was called a Guaranteed Bond with Standard Life for 5 yrs. 'Guaranteed' in the sense that I would get the initial £5k back, but obviously I realised it didn't guarantee anything else. The examples given at the time were based on the possible FTSE Index growth:
If at 2% a year, I'd get back £5460.
If at 4% a year, £5960.

In 2005 when it matured I got back precisely........ £5000.

Obviously it wasn't the right thing or the right time to have put the money into in my case, but thank the lord I did at least get the capital back... though how much its value had dropped in 5 yrs I shudder to think.

jem16

cottager wrote: »

Obviously it wasn't the right thing or the right time to have put the money into in my case, but thank the lord I did at least get the capital back... though how much its value had dropped in 5 yrs I shudder to think.

The question is - if you had put your money in a decent non-guaranteed fund how much would it have gained over the same time frame?

The main problem with these GEBs is that they are usually regarded as rubbish on here and usually offered by banks to gullible customers.

cottager

jem16 wrote: »

The main problem with these GEBs is that they are usually regarded as rubbish on here and usually offered by banks to gullible customers.

Well, in my defence...
-- While not being a particularly gullible person in many things (I don't think) I would have been, and still am, with investments as I don't have much, if any, knowledge about them or basis for judging for myself, so rely on advice.
-- The S/Life bond was done through an IFA.
-- I didn't know about and wasn't a member of MSE then

Just wait till I get round to asking (as I will be) about other similar chunks of money from the same time and still invested, then you can have a real field day with me :rotfl:

swiss69

You have to look deeper into the product and especially who is the company providing the guarantee.....Scottish Widows might be marketing the product but might not be the backer.

Lehman Brothers were backing some of these last year and we know what happened to them!

The policy document should explain this.