Tuesday, 1 July 2008

Arc Capital & Income plc 'Bricks and mortar plan'

Here's an investment I wouldn't recommend!

Basically, they stick your money on deposit for six years (that's where the 30% comes from) and there must be some well-capitalised house-price-bears somewhere who are prepared to take the other side of the gamble, in other words, the more prices fall, the bigger their pay-out (and vice versa).

If I were a bank or building society, or indeed a big property company, that's exactly the kind of punt I'd take - it insures me against house price falls.

So, who do you think will win this bet, the Big Boys or the mugs who sign up for this?

1 comments:

Simon Fawthrop said...

"You should also note that your original investment will be
returned in full regardless of the movement in the Index."

Its not that much of a risk.

"Capital protection is subject to continuing solvency of the major
financial institution which issues the underlying investments of the
Plan."

Or maybe it is.

File under - sounds too good to be true