Guaranteed Fund
Invest with a money-back guarantee
The Guaranteed Fund is an investment option within the Investment Bond, arranged by The Co-operative Investments and provided by Norwich Union.
The Guaranteed Fund gives you the benefit of the potential growth of financial markets, whilst protecting the value of your investment on the fifth anniversary.
Here are some of the features of this Fund:
- You need to invest at least £5,000 which cannot be switched from another Investment Bond fund.
- Money-back guarantee – on the fifth anniversary of your investment, you are guaranteed to get back what you put in, if you haven’t made any withdrawals. This means that if financial markets don’t do well during this time, you will not lose any of the money you invested.
- If financial markets do well, unlike some other guaranteed products you will get back what you put in, as well as ALL the growth that your investment in the Fund has achieved during the time your money has been invested, less charges.
- Similar to any other investment into the Investment Bond, you can take your money out at any time (subject to charges if money is withdrawn in the first 5 years). Any withdrawals or switches from the Guaranteed Fund will reduce the guarantee in proportion to the number of units cancelled, rather than the cash amount you can take out of the Fund.
- After 5 years, you have a range of options which may include switching to another guaranteed fund, switching to a different fund, or taking your money out. If no choice is made at the fifth anniversary, the funds will be switched into the NU Deposit Fund.
Please note that the Guaranteed Fund is not the same as a bank or building society account, where your capital and earned interest is secure at any time. The value of the Guaranteed Fund can go down as well as up and the Fund guarantees to return your capital only at the fifth anniversary. At any other time you might get back less than you put in.
Who it’s suited to
This Fund is particularly suited to investors looking to generate better returns than cash and who are concerned about losing money in the stock market, and want to cushion their investment (at the fifth anniversary) from the impact of stock market falls.
It may also be suited to more adventurous investors who may want to balance the risk profile of their portfolio. It is important to note that there is no guarantee that the gains from this investment will be greater than those that could be achieved from other types of investment.
More information?
Download our Guaranteed Fund brochure (PDF - 2.2 MB) which tells you more about the Fund and gives you case studies on how the Fund works.
The Investment Bond, provided by Norwich Union, is available from The Co-operative Investments only through a Co-operative Financial Adviser. Make an appointment online or call our UK-based Customer Contact Centre on 08457 46 46 46. We are open from 8am – 8pm Monday to Friday, and 8am to 5pm on Saturday.
Calls may be monitored or recorded for security and training purposes. Calls to 0845 numbers will cost no more than 4p per minute for BT customers. Call charges from other companies may vary and you may want to check this with your service provider.
