The fund is the third in the Defined Growth Fund series and aims to provide an attractive return with less risk than investing directly in the stock market.
It offers a return of 11% per annum (not compounded) and has a six-year maximum term, but could mature early on any anniversary.
The performance of the product is based upon the FTSE 100 and it aims to protect investor’s capital so long as the index does not fall by more than 50% from its initial level during the product’s term.
The fund purchases securities and derivatives from six financial institutions in order to generate the investment return and each of the institutions have been chosen for their strong capacity to meet their financial obligations on the fund.
In addition, no single institution will have more than 20% of the fund invested in it.
Aviva plans for the fund to be open to investment for nine weeks, closing on 10 February. A minimum of £1,000 is required for a direct investment and £500 if the investment is made within a stocks and shares ISA.
