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Protected Investment Guarantee |
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Products have emerged on the market which address the situation, of particular current importance, where share markets decline and portfolios lose substantial value.
The principle behind the product is to guarantee a market value of investment, irrespective of whether the investments fall in value. |
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The product has analogies with techniques used in financial and foreign exchange markets over many decades, in that it “locks in” a value. It is a type of hybrid capital - guaranteed investment which has the capital guarantee but also permits access to market growth.
If the market value grows above the protected balance the protected balance can be adjusted upwards.
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There are costs associated with the protected balance – and these costs are analogous with an insurance premium or an option premium.
If you are interested in learning more about these products, consult your financial advisor. If you need help in finding a suitable advisor please contact our office and we can assist you. |
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Click here for details of an upcoming seminar on this topic. |
