From: "dp" 
Newsgroups: uk.finance
Subject: Re: FTSE linked bonds
Date: Wed, 7 Jul 2004 00:39:06 +0100

> >Is it worth investing in FTSE linked bonds?. I've seen one at Co-Op bank
> >which will pay back 100% FTSE gains over 5 years.
>

National Savings offer better bonds from time to time paying 110% of footse
gains.

It is only worth investing if you are happy to tie your money up for the
full term. Early withdrawals are penalised heavily. The capital guarantee
isn't worth much unless you believe the footse index could be lower in 5
years' time. This is unlikely but possible. The last 5 years is the only
time the index has fallen over such a period since 1984.

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www.footse.com