Barclays Wealth said it has reduced the risk of investors losing capital in one of its structured products, the Target Growth Plan. In the move, the latest version of this TGP will pay a return of 50 per cent plus full repayment of capital as long as the FTSE 100 has not fallen by more than 50 per cent at maturity.

In a change from the preceding series, the firm has moved to mitigate the risk of capital loss by creating a structure in which the capital at risk barrier is only observed at maturity, rather than throughout the life of the plan.

In the event of the FTSE 100 closing below 50 per cent of its starting level at maturity, both capital and the return will reduce 1:1 with the index. So if the index finishes at 49.9 per cent of its starting level the capital is reduced to 50 per cent and the return to 25 per cent and investors receive 75 per cent in total.

For enhanced tax efficiency, all returns are treated as capital gains rather than income. The minimum investment is now £5,000 (about $7,270).

Colin Dickie, director, Barclays Wealth, said: “We think a 50 per cent target return after five years is a very attractive proposition in the current market, particularly as the plan is structured to combine both the capital and the return in the event of the index finishing below 50 per cent of its starting level. This scenario would usually wipe out returns completely but the Target Growth Plan simply reduces the 50 per cent return in line with the index, giving investors a higher total payout.”