Morgan Stanley has launched its FTSE Defensive Digital Growth Plan, which offers a fixed return of 60 per cent at maturity if the FTSE 100 index has risen at all or even fallen by up to 20 per cent over the six-year term of the plan.

Investors also get some protection against a falling market: as long as the FTSE 100 index level at maturity is not 50 per cent or more below its level on issue date, then capital is protected. But if the FTSE 100 index has fallen by 50 per cent or more at maturity, investors’ capital will be reduced on a one-for-one basis.

The three reissues are the FTSE Protected Growth Plan 38 aimed at investors with a mildly bullish view on market growth but who would like to preserve their initial investment no matter how markets move; the FTSE Kick Out Growth Plan 8 which offers the chance for early exit after three years, otherwise uncapped, leveraged exposure to any positive FTSE 100 performance over the six-year term; and the FTSE Best Entry Growth Plan 5, in which investors can benefit from 200 per cent of any growth in the FTSE 100 Index over the six-year investment term, up to a maximum return of 100 per cent, with a market timing feature.

For all four plans, investors’ capital is used to purchase debt issued by Morgan Stanley.