Incapital Europe, the London-based affiliate of Chicago-headquartered investment bank Incapital, has launched the first tranche of a structured investment that aims at fixed growth while reducing exposure to market risk. 

The strategy of this Digital Growth Plan – Defensive Series 1 was designed in the light of current market conditions and investors’ requirements, so that the investment will pay a return even if FTSE 100 falls – by not more than 30 per cent at maturity.

The plan offers growth of 30 per cent plus 100 per cent return of capital at the end of the four year term if the FTSE 100 is at or above 70 per cent of its initial level.

If the index is below 70 per cent of the initial level and at or above 50 per cent of it then the capital will be repaid in full, but with no growth. If the index is below 50 per cent of the initial level then investors lose capital on a one-for-one basis to the fall in the index.