FTSE 100 kick-out deposit Plan 30

Dick_Turpin99

What are your opinions of thi product?

I've been advised to try it - looking upto 5yrs to tie the money away. Is it risky in todays climate or worth a punt?


http://www.investecstructuredproducts.com/advisers/products---downloads/investment-plans/ftse-100-enhanced-kick-out-plan-30.html

Reaper

I'm not a great fan of structured products but as they go I guess it looks OK.

The main risks to your capital are:
1) The FTSE falls more than 50%
2) Investec goes bust. They are rated BBB by Fitch which is investment grade, but only just. I see you have the option to spread the guarantor around other banks if you think they are any better, though you get a reduction in the return if you do.

Also if it does last the full 5 years note that they do the standard wheeze in the last year of averaging out the period of March - September which normally works against you (if the FTSE rises).

dunstonh

I havent got time to analyse it now but in your title you say FTSE100 kick-out deposit plan 30. However, there is no indication on the link that this structured investment is deposit based. Big difference between those that use a market counterparty and those that are deposit based.

atypical

Has to be bought via an IFA. Any got any advice on how to go about this. Would there be a minimum investment amount? And would they ordinarily share the commission seeing as there's no advice provided?

dunstonh

atypical wrote: »

Has to be bought via an IFA. Any got any advice on how to go about this. Would there be a minimum investment amount? And would they ordinarily share the commission seeing as there's no advice provided?

An IFA would typically allow it on execution only. How much rebate you get on commission would depend on amounts. IFAs still have some liability on execution only. e.g. if you know something is bad then you shouldnt do it on execution only.

Reaper

Structured products have plenty of small print and catches but if you are sure you understand it and the risks and don't need advice before buying it then Cavendish is probably the cheapest route for execution only.

You pay a £35 flat fee and then they give you the 3% commission they earn back.
https://cavendishonline.co.uk/investments/guaranteed-bonds/

Though if they give you the choice I think I would rather have the 0% commission one without cash back as the return then increases to 16.2% pa.
http://www.investecstructuredproducts.com/advisers/products---downloads/investment-plans/ftse-100-enhanced-kick-out-plan-30.html

darren72

This does look an interesting one.

Does anyone else have any opinions on it ?

Thanks

darren72

I took out the Premier Asset Management 37 plan about 4 years go, and looking for something similar.

This looks to be quite similar.

Does anyone have any experience of the Investec structured products, and whether this one is actually one of the good ones (I know most are bad, but occasionally a good one does come along!).

Thanks in advance