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Article: Equity bond with 100% guarantee.
- Article from:
- Investment Adviser
- Article date:
- October 21, 2002
CopyrightCOPYRIGHT 2002 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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National Savings and Investments has launched a five-year equity bond that offers 100 per cent capital guarantee.
Returns from the Guaranteed Equity Bond, which is on sale until 28 November, have been linked to the FTSE 100 index. The maximum potential return that investors could get at maturity has been capped at 65 per cent (gross).
If the FTSE 100 index grows by 65 per cent at the end of the bonds lifecycle, investors will receive a 65 per cent return over the capital invested. The capital will still be returned in full, no matter how much the index falls during the five years.
While the bond offers full capital security, the investment is ...