With World stock markets at low points, many investment companies are launching products that 'gamble' your capital on stock market levels and recovery. Many products have been launched for the up and coming ISA season and offer income and growth returns not available from other investment and savings vehicles. The general rule is that if it looks too good to be true, it probably is. These investments can be great for some types of investor but you must understand the worst case scenario. If you are happy with it, then fine. If you are not, don't invest. Many people go into these investments thinking that their capital is safe and guaranteed to be returned. It is not unless the stock market index it is linked to performs as it needs to. For people that need a certain level of income and are not worried about possible capital loss, these investments could be suitable. But, please read the small print first!
Our tip:
Please understand the risk to your capital. These investments are not for the low risk investor who has to have all capital invested back. Return of your capital is basically gambled on stock market returns. If you can't afford to lose it, don't invest. If you need help contact us about our full remote advice service or make use of the discount help route Ask An Adviser service.