A little advice...PruFund Investment Plan

joannemwood

Hello

I hope you could help me with some advice for my Mum.

My Mum has recently visited an Independent Financial Adviser, who has suggested that she invest her £50k savings in a PruFund Investment Plan.

I hoped someone with some experience of these could offer me some advice. With the current climate, we want to ensure that she makes the right decision, and does not loose her capital. If she does go ahead, she will be leaving it in the fund for at least the minimum suggested term of 5 years.

The initial idea would be to put the investment in as a growth fund for the first year (not to touch the interest), then move the whole investment across to the PruFund Investment Plan.

Thanks for your help...I'm a newbie with no clue about this sort of thing!!

Thank you

Joanne

Lokolo

If she leaves her m oney in for the period of 5 years then she will get the "Rolling Guarantee" which means that she will get back her initial investment whatever the value is.

Not sure how good it is though.

If she is willing to leave the money in for 5 years then her capital is safe.

juicyjude

If it is any help my IFA advised me to do the same thing. Perhaps with a few suggesting it, it may be wise to go ahead, but it is something only you can decide upon. Remeber do your own research, sorry cant be more helpful

dunstonh

Its a good option for those that dont want full exposure to investment risk and a few guarantee options built in but are looking for more than cash.

It is an investment, not cash, and that means the money really needs to be there for at least 5 years.

In a rising market, it will not perform as well as a unit linked investment. However, in a falling market you wont suffer the same sorts of losses. That is the compromise you make when you want guarantees.

Those that I have on my books have done very well. Going foward, the potential is still good as Pru managed to go defensive on their investments before the crash came (and they have a good record on that front. That doesnt mean they will in future though as that is always unknown).

I wouldnt be surprised to see more people put some of their portfolio into these sorts of things going forward with cash rates being so bad. Plus you get a minimum of 90% FSCS protection with no upper limit.