HSBC Guaranteed FTSE Tracker

I invested £10,000 in a similar fund from HSBC at the end of 1983. It returned £18,771.97 to me 5 years later, which I was reasonably happy with.

Chris

One catch is that 'All returns will be liable to UK Income Tax' rather than Capital Gains. Anybody know why this is?

What would it have earned in the last five years?

One catch is probably that you don't get any of the dividends.

Another might be that you get 115% of any fall in the FTSE index.

At 10:54:01 on 22/02/2005, snipped-for-privacy@hotmail.com delighted uk.finance by announcing:

Would it be classed as a savings account?

At 22:26:03 on 22/02/2005, Jonathan Bryce delighted uk.finance by announcing:

Perhaps this is where the extra 15% is coming from?

Nope. You're guaranteed to get your initial investment back.

Thanks for all your help. In conclusion:

1. Dividends aren't included. Cheers Jonathan.
2. It can't be put in an isa.
3. I think it is classed as a savings account so it's subject to income tax. Cheers Alex.

I think the last 5 years are a bit of an exception to what normally happens over 5 years , although that's not to say it won't happen again!

If the market ends up being lower at the end then you'll have lost money with no way of keeping it in there until the market recovers, which you'd have been able to do had you bought a normal tracker.

"Receive back the whole of your original deposit plus 115% of any rise in FTSE 100 Index over the term at maturity."

original capital is guaranteed, no way of loosing value in nominal terms