Defensive investment plans
For investors who are concerned with volatile markets it is worth considering the merits of defensive investment plans, which are designed to produce investment level growth returns even if the underlying investment goes down.
They offer a defined return for a defined level of risk, so you will know from the outset exactly what must happen in order to receive any growth and a return of your initial investment.
Although each plan has its own characteristics, they are designed for investors who are not convinced the markets will continue to rise and so wish to have the potential for investment returns even if the market falls slightly.
Defensive Growth Plan
Meteor FTSE Annual Step Down to 80 Kick Out Plan
Potential Return – 6.35% pa
- Potential early return in years 2, 3, 4, or 5
- Return paid if level of the FTSE 100 is above required reference level on an annual observation date
- Reference level reduces from 100% of the FTSE 100 Opening level down to 80% over 5 year term
- Available for ISA, non-ISA and ISA transfers
- Invest from £5,000
Capital At Risk
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Mariana FTSE 100 Defensive Kick Out Plan
per annum
MB UK 5Y Annual Step Down to 85 Kick Out Plan Y2 65
per annum
Arcus 5Y UK Defensive Step Down Kick Out Plan
per annum
Meteor FTSE Annual Step Down to 80 Kick Out Plan
per annum
Meteor FTSE Quarterly 85 Income Kick Out Plan
Mariana FTSE 100 Defensive Income Kick Out Plan
per year
Meteor FTSE Quarterly 75 Income Kick Out Plan
per year
Investment Growth Plans
Mariana FTSE 100 Defensive Kick Out Plan
per annum
MB UK 5Y Annual Step Down to 85 Kick Out Plan Y2 65
per annum
Arcus 5Y UK Defensive Step Down Kick Out Plan
per annum
Meteor FTSE Annual Step Down to 80 Kick Out Plan
per annum
Meteor FTSE Quarterly 85 Income Kick Out Plan
Mariana FTSE 100 Defensive Income Kick Out Plan
per year
Meteor FTSE Quarterly 75 Income Kick Out Plan
per year
Different types of defensive investment plan
Although each plan has its own characteristics, collectively they are growth investments which offer the potential for either a fixed return for every year invested (not compounded), or a multiple in any rise in the underlying investment but starting from a lower initial level (normally with a cap on the maximum growth return on offer).
Each of these investments will be structured to offer a defined return for a defined level of risk, and as such you will know from the outset exactly what must happen in order to receive the stated returns on offer.
A middle ground
Defensive investments therefore try and offer the best of both worlds by offering the potential for investment level returns, even if the underlying investment only rises by a small amount, stays flat, or with some plans even goes down slightly.
This means they are designed for investors who have a neutral or negative outlook of what could happen to the stock market in the coming years, and yet who would still like the opportunity to receive the potential for investment level returns.
With the FTSE at historically high levels, these could arguably offer a compelling investment opportunity.
Please note that past performance of the FTSE 100 Index is not a guide to its future performance.