I had a visit from a NU financial adviser. I told him that I was ultra, ultra cautious; I could not afford to lose any of my capital. He told me their Capital Protected Plan was for me. Sounds good - just the job.
Now call me old fashioned but if I was looking to invest some money in a plan called : "Norwich Capital Protected Plan" - then I would have thought that my original investment ie my Capital would be "safe"/"protected"/"guaranteed".
In the booklet provided it does say: "What you get back depends on how your investment grows and on the tax treatment of the investment." Good - sounds fine - I realise that the investment may not grow - but
- I will not lose it.
However, what that sentence should say is:
"What you get back depends on how your investment grows and on the tax treatment of the investment, and on whether the company from who we purchase the corporate bond is still in business"
As elsewhere it does say there is a possibility that the company (providing the bond) could fail or become insolvent, your investment could be at risk, and you could lose some or all of it.!!
Perhaps I'm just old-fashioned.