Investec picks inflation for first income product

Investec has launched the first structured product in its income category; a hybrid product linked to the performance of both UK equity and inflation levels. The plan, which has a five-year maturity, offers minimum annual payments of 7.25%, with 50% capital protection.

Additional payments are linked to the performance of the Retail Prices Index (RPI), which tracks the core inflation measure in the UK. Capital is protected provided that the FTSE 100 share index does not fall by more than 50% during the life of the product, or fails to recover to its initial starting level by maturity, in which case capital loss will be 1:1. It is open for direct investment until August 22.

The product is the eleventh to be launched by Investec, which unveiled its new range in