David asked in Business & FinanceInvesting · 7 years ago

would you invest in a product that pays 7% per year for the first five years guaranteed with a duration of 15?

Its linked to the S&P and Russell 2000. It has 50% downside protection on interest and principal. If the indexes go below the 50% level, you will not receive any interest during that period, but once above the 50% knock, you will get your interest per month. Also at the end of 15 years if the index levels are above the 50% knock in event, you get all your principal back. best case, you'll earn 7% for 15 years and get your initial investment back. If the index is at 1600, the levels will have to remain above 800 to get your interest with the first 5 years guaranteed.

1 Answer

  • 7 years ago
    Favorite Answer

    No those returns are not attractive enough for me and I would not invest in it.

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