Tracker bonds are a great investment option for the conservative investor. A tracker bond is an investment that aims, at the end of the product term, to return a set percentage of your investment plus the possibility of an extra amount based on the performance of a stock market index.
Tracker bonds may suit you if you:
- Have at least €10,000 to invest.
- Are 75 years or younger (next birthday).
- Are prepared to invest a lump sum for a set time frame without the ability to access.
- Want an investment that either fully or partially protects your money and understand that this means you are happy to settle for potentially lower returns than you could achieve by investing without full capital protection.
- You understand that both the capital protection and the potential returns are provided to you by a counterparty and you are prepared to accept the possible default risk that applies.