This is a lump-sum investment product for a fixed period of time, commonly between 3 and 6 years. Minimum investment amounts vary from product to product and can be as low as €2,000. Many trackers offer a full or partial capital guarantee but returns are often subject to restrictions.

• Normal investment term: Fixed, usually between 3 and 6 years.
• Guarantees: Percentage of capital or no capital guarantee. Any capital guarantee only applies at maturity. No guarantee on level of return on investment portion.
• Risk: If the index does not rise over the period of the tracker, you will only get back the capital guarantee amount, devalued by inflation over the tracker term. Also some tackers do not offer a full capital guarantee.
• Charges: Usually implicit (deducted before returns are set). Note that you only benefit from the growth, if any, in the relevant stock market index over the period of your investment; you do not benefit from dividend income that a direct investor in shares could receive. 
• Access: Generally no access before maturity.
• Anything else? Check to see the exact guarantee offered by the bond. Note that some bonds cap the maximum return you can earn, even if the relevant stock market index grows strongly.

Note on tracker bonds: these are complex products and it can be difficult for investors to understand how returns are calculated. Be sure to ask your advisor to outline the likelihood of a particular return being acheived.

For more information please contact our sales team at 014097090 or info@orca.ie