IFA Mark Osland has given a qualified welcome to the guaranteed equity bond from National Savings & Investments.
Mr Osland, director of Bath-based IFA Fidelius, said: "The lack of upside limit is good, as is the 10 per cent enhancement of any rise in the FTSE."
However, Mr Osland said: "It is only for those investors prepared to accept a five-year fixed term. But it does have a slight advantage over its competitive products, as many of those are for longer terms."
The guaranteed equity bond offers a gross return equivalent to 110 per cent of any growth in the FTSE100 over the five years to 19 May 2009, with no upper limit. There is a 100 per cent capital ...