What are Guaranteed Return plans?

This blog focuses on how a guaranteed return plan can help investors during a volatile financial period.

Given issues such as skyrocketing inflation and volatility in the markets, people do not want to take too large a risk with their hard-earned money. Many investors are looking for a financial solution which offers them growth potential with protection.

However, also due to inflation, simply keeping your funds idle in a bank is not going to cut it either, as you will actually end up losing money in the long run.

One way to avoid this is to go for a long-term investment option such as a guaranteed return plan. This is typically considered a safe investment. It also lessens your risks while offering a return on your investment.

Can Guaranteed Return plans protect your money even if there is a downturn?

In a recent webinar on ‘Consistent and Guaranteed Returns in Falling or Flat Markets’, deVere Group CEO Nigel Green explained how, despite factors such as inflation and volatility, the current bear market does offer investment opportunities, with the possibility of earning good returns, while mitigating risk.

“If you’ve got your money in a bank account at the moment, you are losing money,” Mr Green says, “But if you realise what the financial environment is, the good news is that you can still invest and make money. And there are some good opportunities to invest, and you make sure you have a good advisor to explain to you how to take advantage of this particular era.”

During the webinar Mr Green reminded participants that, as far as investing goes, there is no such thing as ‘no risk.’ However, he says, there is such a thing as looking for a good return while mitigating the risk.

“That’s what I look for. I invest in products where I limit the downside (such as) a structured product or a fixed yield instrument,”.

How do Structured Products work?

Structured or fixed income products are a pre-packaged investment strategy offered by deVere Group. They produce a return for investors by exposing their lump-sum to specific individual stocks or financial markets. 

guaranteed returns

Structured products work by offering a fixed return which is dependent on certain market conditions. These conditions generally depend on major markets maintaining 80% or so of their value by the maturity date. This means that you could earn a fixed return, which is generally paid every quarter, even if major underlying markets drop by a significant percentage.

These kinds of products include what are called a ‘memory feature’. This means that if interest payments are skipped due to a dip in the market, they will be back paid when the market returns above the barrier.

guaranteed returns

Structured notes typically run for four years or more, so they are most suitable for those investors who are looking for regular interest payments and are prepared to tie up a lump-sum in a medium to long term period, rather than short term. Including structured products in your investments may a great way to diversify your financial portfolio

Find out more

If you would like to find out more about how investing in deVere Group’s exclusive structured products can help you enjoy a consistent fixed return in the current bear market, please contact one of our financial advisors.

You can also access deVere Group’s fixed income products via the deVere Investment App. The app, is available on both Android and iOS, allows users to trade effortlessly, and deposit funds in EUR, GBP and USD.

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