Stock Market-Linked ISA

masonic

For a bit of added context, this chart shows the performance of a series of diversified index funds over a similar timescale to your market linked ISA. The range from the very low risk (20% equity) fund to the high risk (100% equity) fund was 33-52%.

Of course, your product came with a capital guarantee, which comes at a price, and is one factor that contributes to the performance of your ISA coming in at the lower end of that scale. Looking at what happened to each of those funds during the market correction in summer 2011 may give you an appreciation for the relative loss-potential of funds across this spectrum of risk. To put into context, this 10% correction could be magnified 4-fold or more during a serious market crash. However, if you are planning to invest over decades, these short-term falls will tend to be greatly outweighed by periods of rises.

ScottyLP

How much is the cap on growth? I've known a few of these l&g structured products that cap returns between 40 + 50% of the original deposit amount (so in your case between £2000 & £2500)

So if it's at the lower end , then I'd possibly take it.