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Article: National Savings launches Guaranteed equity bond.
- Article from:
- Investment Adviser
- Article date:
- March 12, 2007
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National Savings & Investments is to launch its first Guaranteed Equity Bond for nearly a year on 14 March 2007.
The bond will offer a return equal to 120 per cent of any growth in the FTSE100 index over the five-year term of the bond, without any risk to investors' capital.
With no upper limit or cap on the return of the FTSE, if the FTSE100 index rose by 20 per cent over the five-year term, AGBP10,000 invested would earn a gross return of AGBP2,400 meaning the investor receives AGBP12,400 at the end of the five years.
If the FTSE rose by 30 per cent over five years, AGBP10,000 would earn AGBP3,600 meaning the investor receives AGBP13,600, a ...