endowment

dunstonh

The multiple investment fund virtually tracks the sector average of the balanced managed fund sector. 8% p.a. average would be a good guide to use for this fund. If we had a couple of good years ahead it could come back on track but I dont see anyone predicting a long enough sustained growth period in the short term to get you the double digits needed.

EdInvestor

perangusta wrote: »

Maturity forcast between £18,800 and £24,400 depending on growth

If you surrendered this policy (you can't sell it) and used the lump sum to pay off the mortgage, also increasing the monthly mortgage payment by the same amount as the endowment premium, at maturity you would end up with a guaranteed return of 22,932, using an average mortgage interest rate over the rest of the term of 5.75%.

This is a no risk return unlike the forecasts for the endowment which could be slightly better or quite a lot worse.

It's up to you whether you think the potential reward for staying above the guaranteed return compared with the risk of loss is enough.I'd have thought not myself