Equities for the wary

By HELEN MONKS
Updated:

 

INVESTMENT company NDF Administration is launching a new investment plan for investors stung by falling equities last year.

The NDF Recovery Growth Plan is designed to give investors the opportunity to recoup their losses and to grow new profits by investing in equities, while at the same time reducing the risk to their capital.

The plan, which launches on January 7, allows investors to benefit 100% from rises in the FTSE 100 stock market index over five years, with no cap on the maximum amount of returns.

Investors will also receive 100% of their capital back if the FTSE does not fall by more than 50% during the set period and then fails to recover.

The company is optimistic that investors will receive their total capital amounts back. It points out that at no stage since the index was introduced in 1984 would the 50% barrier have been breached, despite the 1987 crash and stock market volatility during the second half of 2001.

Minimum investment in the plan is £7,000 and there is no maximum investment limit. The plan closes on February 28th and on February 14th for Pep or Isa transfers.

NDF Administration managing director Antony Stack says: 'This product would suit anyone who still thinks there are good returns to be had by investing in equities, but has had their fingers burnt recently. These kind of investors might have previously gone for tracker-based plans.'

The Recovery Growth Plan can be invested within the tax-efficient wrapper of an ISA. Investors who have already used up their ISA allowance can invest directly and by utilising their unused capital gains tax allowance, which is £7,500 for each individual annually, can take tax-free gains.

Except for a £50 fee on Pep or Isa transfers, there are no charges on the product

If you want to know more call 0800 328 1976 or visit NDF's website.

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