Three Year Plan Risk Factors
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Yes ,
I am happy to invest because:
• I accept the potential risk to my capital for the prospect
of a return which will be three times the rise in the Index
over the next three years, but limited to a maximum return
of 40%
• I want to share in some of the growth potential of the
Index over the next three years
• I am unlikely to need access to my money over the next
three years |
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No ,
this plan probably isn’t right for me
because:
• I don’t want the risk of losing capital if
the Index falls by more than 50% at any time during the term
• I may need to sell the investment before maturity to get
access to my capital and cannot risk getting back less than
I invested
• I don’t have enough spare money to cover any unexpected
emergencies
• I don’t want to give up the dividends I might get if I
invested in shares or similar investments
• I don’t want to risk getting back no return on my capital
or less than I would have done if I had invested in a
deposit account
• I want a regular income from my money
• I am a regular saver and I prefer to be able to add to my
investments from time to time
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Things to consider
What is the difference between a capital-at
risk product and a savings account?
When you put your money in a bank or
building society savings account, its original value
doesn’t change and you also get interest. The return
will be comparatively low, which reflects the fact that
you haven’t risked your capital. With capital-at-risk
products you may get higher returns, but you are putting
your capital at risk and may end up with less than you
put in.
How do I know which products to choose?
Consider your financial needs carefully;
how much – if anything – can you afford to lose? And for
how long can you afford to have your money tied up? Do
your homework and shop around. Don’t just look at
headline information, check the detail. Capital-at-risk
products are not right for you if you can’t afford to
lose money. But if you are willing to take risks to
benefit from potentially higher rewards, there are many
products to look at.
How long will my money be tied up?
With most investments you should expect
to tie up your money for some time. Some capital-at-risk
products offer returns if you leave your capital with
them for a fixed number of years. Other investments can
continue indefinitely.
Can I cash in my investment?
Yes, you can usually cash in. But with
some products you have to pay a penalty (known as a
redemption penalty) if you cash them in before the
maturity date. As a rule, never tie up your money you
may need in the short or medium term.
If the investment period is fixed, what happens at the
end of it?
At the end of a fixed period your
investment will mature and you should get its maturity
value. But the maturity value may be reduced by charges
or a final adjustment if, for example, it depends on the
value of an index. Depending on the terms and conditions
of the product, you could end up losing some or all of
your capital. Also, any income or growth you have
received may be subject to tax.
Will I get the advertised rate of
return?
This depends on the terms and conditions
under which you have invested. Often the advertised rate
merely illustrates what is possible, and is no more
certain than that.
5 Year Plan Risk Factors
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Yes ,
I am happy to invest because:
• I accept the potential risk to my capital for the prospect
of a return which will be five times the rise in the FTSE
100 Index (the ‘Index’) over the next five years, limited to
a maximum return of 75%
• I want to share in some of the growth potential of the
Index over the next five years
• I am unlikely to need access to my money over the next
five years |
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No ,
this plan probably isn’t right for me
because:
• I don’t want the risk of losing capital if
the Index falls by more than 50% at any time during the term
• I may need to sell the investment before maturity to get
access to my capital and cannot risk getting back less than
I invested
• I don’t have enough spare money to cover any unexpected
emergencies
• I don’t want to give up the dividends I might get if I
invested in shares or similar investments
• I don’t want to risk getting back no return on my capital
or less than I would have done if I had invested in a
deposit account
• I want a regular income from my money
• I am a regular saver and I prefer to be able to add to my
investments from time to time
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Things to consider
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The Plan is designed for investors who can invest an
amount for five years and leave their capital invested
during that time. You can sell the investment before the
end of the term but you may not get back the amount you
invested.
•
This Plan is not like a deposit account.
All the Plan’s benefits are paid at the end of the
chosen investment period. No income or other benefit is
paid before then.
•
If the Index rises above the level at
which the maximum return would be payable, you will not
receive any additional payment.
•
If the Index falls over your chosen term, you will get
no return at all. Indeed, if the Index falls by more
than 50% from the start date and is below this level on
21 October 2013, your capital will be reduced by the
percentage amount by which the Index finishes below the
start level.
•
The FTSE 100 Index measures only the capital value of
the shares in the Index and no allowance is made for
dividends paid by the companies in the Index.
•
Remember, whatever you get back at the end of the
investment term, inflation during the term will have
reduced its value.
Please refer to the Brochure and the Terms & Conditions for full
details. |
