Kick Out Investments

"Kick out investment plans can be an attractive investment option providing a predetermined rate of return if the underlying asset performs sufficiently well on one of a given series of dates.".


Oliver Roylance Smith, Director

Kick Out Investment Plans

With these types of investment plans there will be a series of dates and a set of corresponding target index levels (e.g. FTSE 100) for each of those dates. So for the first date if the index finished at or above the target level the plan will mature or "Kick Out" providing a predetermined return and the original capital invested. If the index finished lower than the target level the plan would continue until the next target date. If there is no "Kick Out" the plan will continue until maturity and depending on the terms of the plan capital may be at risk.

With these types of plan the "Kick Out" will usually be treated as a capital gain for tax purposes.

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