Axa Manx to mirror Barclays Wealth
Axa Isle of Man has launched a mirror fund that invests in Barclays Wealth Defined Returns plan.
The fund is being aimed at those investors who are willing to take on a degree of risk as it is a structured capital-at-risk investment where investors could lose part of their outlay.
The mirror fund has a term of between one and five years and will end on the first anniversary where the FTSE 100 Index is at the same level as, or greater than, the starting level.
Phil Perry, director of Cheshire-based IFA Ark Financial Planning, said he tended to steer clear of riskier investments and generally advised his clients to stick with the long-term offerings, particularly those that did not risk the initial capital outlay.
He said he also felt mirror funds were typically slightly more expensive than the fund itself but sometimes it was the only choice the investor had.
He said: "With most investment bonds you are probably more limited as to the fund choices but there may be a very specific reason for you wanting to invest into a particular contract and if you want to invest in a particular area."
Mr Perry also said he preferred open-ended products where the investor could take advantage of any positive movements at any point during the fund's performance.
He said he also felt a safer investment was one that was over the absolute minimum of five years.
He said: "I do not like to be tied to a specific period of time because you may end up having to have this kick-out period at the wrong time, so they govern you."
