Barclays Wealth has launched a Target Growth Plan offering a maximum 21 per cent return at maturity. The product has a three year term with a minimum initial investment of £5,500 ($8,600).

The plan is aimed at investors who question the medium-term growth prospects for the FTSE 100 and at the same time seek to strike a balance between risk to their capital and overall return. To achieve the maximum return, the FTSE 100 index must either be at or above its initial level at maturity or alternatively never fall below 60 per cent of the initial index level at close of play on any day over the term of the investment. If these conditions are met, an investment of £10,000 would give a return of £2,100.

Should the FTSE index level fall below 60 per cent of the initial index level at the close of business on any day and at maturity is not equal to or greater than its initial index level, both the return and initial capital will be reduced by the percentage amount the final FTSE index level is below its initial level.

Even if this does occur, investors may still receive a level of return or all their initial capital returned depending on the percentage amount that the index has fallen by. On an investment of £10,000, the index level would, on maturity, need to have fallen by more than 17 per cent for an investor to receive less than the initial amount invested.

“While it is important to highlight that investors capital is fully at risk in this product, the ability to deliver a return if the market falls does give the product a certain defensive appeal,” said Richard Henry, director, Barclays Wealth.