“With the FTSE 100 falling just over 8% since the start of the month, we’re reminded that there are a number of investments which could provide a competitive return even if the FTSE goes down.

The Defensive Bonus Plan from Morgan Stanley offers an annual return of 9.5% provided the FTSE at the end of each year is no more than 10% below its value at the start of the plan. For example, if the starting value of the FTSE is 5,500, then provided the value at the end of any year (from year 2 onwards) is no less than 4,950, the plan will mature early and you will receive a return equivalent to 9.5% per year, plus a return of your original investment.

Many kick out plans require the FTSE to be at least the same level rather than up to 10% below and with conditional capital protection built in (if the plan does not mature early you will receive a full return of your capital provided the FTSE has not fallen by more than 50%), this plan makes an attractive investment opportunity.”

Oliver Roylance-Smith, head of savings and investment

The past performance of the FTSE 100 Index is not a guide to its future performance.

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This is a structured investment plan that is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.

There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The past performance of the FTSE 100 Index is not a guide to its future performance.

If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.