Aviva's guaranteed funds offer you two routes to growth potential
This information is designed to help you understand more about saving and investing before you make any decisions and not to provide you with financial advice.
Whether your approach to investing is cautious, or whether you are willing to accept more risk, we are confident that our two carefully balanced funds have something to offer you.
These funds are available by investing in Select Investment, our lump sum investment bond, which has a minimum investment of £10,000.
You can only invest in our guaranteed selection funds for five years at a time. When your investment reaches its fifth anniversary you'll have to decide what to do with your money. We'll get in touch with you just before your guarantee date to explain your options.
At any time other than the fifth anniversary the value of your investment can go up and down and you may not get back what you invested if you withdraw your money.
Guaranteed 100 offers 100% guarantee on your original investment on its fifth anniversary less any withdrawals taken. In relation to the other fund (Guaranteed 90) Guaranteed 100 offers you the strongest guarantee and is designed to achieve steady growth over five years. As it offers the highest guaranteed amount it also has a lower potential for growth.
There is an extra management charge of 0.50% per year for the Guaranteed 100 Fund.
Guaranteed 90 has higher potential for growth than Guaranteed 100, but it also carries the risk that you might lose up to 10% of your original investment. On the fifth anniversary of your investment in the fund, Guaranteed 90 will guarantee a return of at least 90% of your original investment, less any withdrawals taken.
There is an extra management charge of 0.35% per year for the Guaranteed 90 Fund.
The Guaranteed 90 and Guaranteed 100 funds offer differing levels of growth potential and guarantees on the initial investment.
They both offer:
- A guaranteed minimum payment on the fifth anniversary – of either 90% or 100% of the initial investment.
- Growth potential by investing a differing percentage of each fund in equities (stocks and shares) or property.
- A lower level of risk than 100% investment directly in equities.
- Expert investment management by experienced Aviva fund managers.
Things to consider
- The guarantee only applies on the fifth anniversary. At all other times during the five year period, the value of the investment can go down as well as up and you may not get back the amount you invested if you withdraw your money.
- Any withdrawals you make will reduce the guarantee in proportion to the number of units cancelled, not the cash amount withdrawn.
- There are charges for managing your investment, and an additional charge is made to provide the guaranteed element.
- The guaranteed element of each fund may result in lower growth potential than is offered by a direct investment in some asset types such as equities (stocks and shares).
- Deposit savings accounts offer less risk of losing money, and with many accounts you can access your money at any time.
- Investors should always consider paying off existing debts before choosing to invest in any fund of this type and investors should also consider investing tax efficiently where possible.
- At the fifth anniversary, only 90% of the original investment is guaranteed in the Guaranteed 90 fund, which means you may get back less than you paid in.
Need more help?
You need to speak to a financial adviser to apply for Select Investment. An adviser will be able to help you decide if this is the right investment for you and go through the application process.
If you don't have a financial adviser you can find an adviser in your area at unbiased.co.uk. Where advice is provided there may be an additional cost to you.