Fed up of your low bank or building society interest payments on your deposit account?
Don’t feel that you investments are working for you? We might just have the ideal investment solution for you.
How about an investment with a Bi-annual Coupon of 5.5% (11% per annum) paid gross sound? Plus you can put the product inside your ISA wrapper. This is just an example of one of the ‘Kick Out’ structured investment products we at Niche currently offer.
Read on and will give you an insight into Niche’s philosophy on how to be a successful investor and achieve high interest yields with an element of protection.
Have you ever heard the saying ‘timing is everything’? Nothing rings more true than when it comes to investing your money.
Recent history has shown that human behaviour is often blinded by success but by-and-large every ten years we complete the economic cycle of recovery/expansion, boom, slowdown/contraction and sadly recession, and this has a direct impact on how much money you will make.
The key is to get out whilst the ‘going is good’ i.e. before the slowdown part of the cycle sets in and it is this expertise which drives serious investors towards the prop of a Financial Advisor. But what if they too are blinded by the gold at the end of the rainbow?
It is almost a throw away line to say we at Niche Advice select our investments very carefully and go through the due diligence to minimise risk as every Financial Advisor could say that, after all, all of them, including Niche, are ultimately beholden to justify their investment recommendation process to The Financial Services Authority.
So what do we do that is different? Well the products provide an excellent fixed rate of interest throughout the product life in return for the use of your capital. The product is designed to return your capital if the product runs for the full term – nothing unusual here. The twist is we choose intelligent investments that have set dates for review, known as ‘observation dates’. If on an observation date the indices the products are benchmarked against are met or surpassed then the plan automatically stops and returns your capital unlike other investments which may perpetually run on and attract future market downturns as the economic cycle concludes. This type of product is known as a ‘Kick Out’ structured investment plan. This unique defence mechanism helps to mitigate the risk which is typically associated with high yielding investments.
Show Me The Money
The interest coupon is set at outset, is determined by the underlying indices and varies from product to product. It is paid at regular intervals throughout the term of the investment (typically every six months). We pitch the product selection based on returns that are typically better than high street deposit accounts as such they have a greater element of risk and reward.
The investments are aimed at investors who are happy to tie their money away for up to five to seven years but the plan could mature as early as within six months if the underlying indices produce a positive increase in that time frame.
The minimum investment is normally £5,000. The maximum investment is £2 million (higher by referral).
We cannot guarantee your return of your capital at the end of the term but we choose products than have historically returned capital and select the funder based on their rating with independent credit rating agency Standard and Poors.
Interested? For more information please complete our the on line enquiry form on the right hand side of this page and I will be in touch.
Author: Richard Stokes
Richard Stokes is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on on Mortgage and Insurance products.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage Advice and Insurance advice.