Growth potential with no downside Risk…is it possible???
With another flat market predicted for 2012 and the uncertainty of world events still plaguing the markets, most investors will approach the year with caution.
It is because of this reason that some very interesting investments have been developed to take advantage of potential upside with 100% protection of any downside…but at what price?
A new investment solution has been designed for investors who are seeking capital growth, with the added benefit of capital protection at maturity after 3 years. Being a growth investment only (no income), investors can complement existing income producing assets with the peace of mind of 100% protection at maturity. However, should the chosen portfolio increase in value at anytime throughout the investment term, the investor has the option to redeem the investment and realise the profit.
Are you seeking a new and strategic investment solution?
If you are sitting mostly in cash, you are probably aware that you are under-diversified and potentially missing out on higher returns offered in other asset classes. You are also probably nervous about the market and not wanting to risk your capital.
Potential investor benefits include:
- Exposure to a diverse menu of investment opportunities with growth potential:
- Australian equities – S&P/ASX 200 Index:
- US equities – S&P 500 index: stock market index of the 500 leading companies in the US
- PIMCO Total Return Bond Fund and S&P 500 index: a diverse portfolio including US government, mortgage and corporate bonds, actively managed to maximise potential total returns
- A investment term of 3 years
- No loan or borrowing
- No product ongoing management fees
The investment is designed to sit above cash and fixed interest on the risk/return spectrum, and just below property and direct share investments.
If you invest in the Australian equities Series and hold the investment until maturity, the graphs illustrate the potential returns in two scenarios:
In both of these scenarios the Investment Amount is protected at maturity.
The market increase scenario shows that you are entitled at maturity to receive 100 per cent of the Investment amount back and will benefit from any gains in the value of the reference asset up to the performance cap of the Series (which for this example is illustrated to be 180 per cent).
The market decrease scenario shows the market dropping below the initial investment level. In this case, you would receive your Investment Amount back at maturity.
Director of Chan & Naylor Financial Planning
For more information contact Chan & Naylor on 1300 99 77 34 and we’ll be more than happy to explain this opportunity further
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