Win-win situation for cautious investors

The clock is ticking for investors to take advantage of positive returns irrespective of market fluctuations.

16:49 15 June 2004

Time is ticking for investors to sign up for Legal & General's Capital Protection Plus 4 and take advantage of a positive return irrespective of market fluctuations.

Capital Protection Plus 4 provides investors with a minimum return of 22 per cent or 50 per cent of any capital growth in the FTSE 100 Index at maturity, in six years time, whichever is greater.

In monetary terms, based on an initial investment of 7,000, investors could expect to receive at least 8,540 at maturity - even if the FTSE 100 Index falls.

Yet the scheme has an application deadline of the close of business on Friday June 18th..

Legal & General's retail investments marketing director, Claire Stracey said: "Capital Protection Plus 4 provides investors with a minimum return of 22 per cent but with the potential to get even more. This is a product that should particularly appeal to cautious investors."

The 22 per cent minimum return is the equivalent of a compound interest rate of 3.3 per cent net every year, for six years. For a basic rate taxpayer receiving interest from a conventional bank or building society account, where capital is guaranteed, this is equivalent to 4.1 per cent gross per annum. And for a higher rate taxpayer it is equivalent to 5.5 per cent gross per annum.

Capital Protection Plus 4 has the added stipulation that it must be held for the full six years to benefit from the 22 per cent minimum return and capital protection. If cashed in before the maturity date, which is June 23rd 2010, investors may get back less than the original amount invested.