Arc Capital & Income is tempting investors with the prospect of 42 per cent gains with a FTSE linked growth product.

The Arc Protected FTSE Growth Plan has a five year life span and two options.

The first option is fully capital protected and offers 18 per cent growth or 50 per cent uncapped participation in the FTSE100 at maturity. So if the index ends exactly where it started, customers get their investment back plus 18 per cent.

The second, point-to-point, option offers 42 per cent growth, or 50 per cent uncapped participation; investors lose 1 per cent of their capital for every percentage point the index falls below half of its initial level -if it has dropped by maturity.

If, for example, the FTSE starts at 5,000 points and on the last day of the five year term stands at 2,500, investors will get all their capital back form the second option.

“The general consensus is that in the longer term the Index will move in a positive direction, even if there are ‘corrections’ on the way. Whether after five years it will be ahead by 42 per cent remains to be seen so this is a great way of hedging one’s position,” said John Gracey, Arc Director.

The minimum investment is £3,600 ($6,000) and investors can get out at any time for a nominal fee of £150 plus VAT. Commission is at 3 per cent and the counterparty is Abbey National Treasury Services.