investing £8000

dmen

My wife has £8000 to invest and wants to invest it in a FTSE linked account with a 100% return from any rise in the FTSE and a guarantee not to lose any money. I know NSI and Skipton Building Society used to do this, but do any companies offer this currently? Help!

dunstonh

A similar thread is in the ISA forum. I think there was over 40 currently available from memory.

Reaper

Schemes like this do exist, although they do have catches. Have a read of Martin's article. It's a bit old but the catches still apply (eg lack of dividends).

Paul_Varjak

Reaper wrote:

Schemes like this do exist, although they do have catches. Have a read of Martin's article. It's a bit old but the catches still apply (eg lack of dividends).

Thanks for that. Must of missed Martin's post whilst I was away from the board for a while.

The NS&I must be quite confident in the people managing the fund that they can outperform the index.

Chippy_Minton

Maybe better than the two mentioned in Martin's article, is HSBC Guaranteed FTSE Tracker with a return of 115% of any rise in the FTSE 100 Index after five years, with the added benefit that your capital will be returned in full if the Index falls or remains level.

Any comments on this and how it compares to the NS&I and Nvesta schemes?

Reaper

A couple of things jumped out at me while skim reading the HSBC offer:

1) The growth in the final year is the average of the last 12 months. So if the stock market grows in the final year you won't get all the growth.
2) The profits are subject to income tax. I would avoid funds like these. Much better is to find one that is subject to capital gains tax instead because hardly anyone uses up their CGT allowance.
3) Early encashment is heavily penalised (but that is true for all schemes).