Prudential Flexible Investment Plan (Bond)

kmb275l

Hi All,
I have a £60,000 bond,taken out in Oct'10 which after reading about passive products,I would like to cash in and reinvest in an index fund when the early surrender charges have fallen away in a couple of years time.
The dilemma I have, is that it was taken out when the FTSE 100 was at 5573.
According to my IFA the TER on this product is 1.56% p.a.
Whilst this is higher than I would likely pay for a tracker fund,would I actually derive any benefit in selling, if the FTSE remains higher than when I bought the product?
Many thanks,

coastline

If this is the bond....its possible to switch into different funds.

http://www.trustnet.com/Factsheets/Product.aspx?productCode=prua0006&univ=N&tab=2

dunstonh

Whilst this is higher than I would likely pay for a tracker fund,would I actually derive any benefit in selling, if the FTSE remains higher than when I bought the product?

Are you invested in the FTSE?

Many of Prus bonds are in their With profits or guaranteed funds. Although they do have other funds available.

How will the chargeable gain for tax impact on you?
Is the move to an index tracker going to increase your risk?

kmb275l

Thank you for your reply.

dunstonh wrote: »

Are you invested in the FTSE?

Yes,I have a Vanguard tracker
Many of Prus bonds are in their With profits or guaranteed funds. Although they do have other funds available.

How will the chargeable gain for tax impact on you?

I don't intend drawing on it.I'm merely interested in building a portfolio to pass on to my children.
Is the move to an index tracker going to increase your risk?

I suppose by investing in an equities based tracker,my exposure to risk will increase,but as mentioned,the plan is to leave it in forever.