Get a fixed yearly return with the Discovery Enhanced Yield Fund
The Discovery Enhanced Yield Fund is designed to give you a high fixed return of 15%* in flat or positive markets.
How the Discovery Enhanced Yield Fund works
The Discovery Enhanced Yield Fund is available on the lump-sum Discovery Core Flexible Investment Plan and is only open from 18 June to 24 July 2018. With a minimum investment of R50 000, you will get a fixed return of 15%* if the FTSE 100 index shows flat or positive returns on the Discovery Enhanced Yield Fund’s first anniversary.
If the FTSE 100 index shows a negative return on the first anniversary, we will reinvest the funds for another year and increase your returns by another 15%*. The total will then be paid at the end of the second year if the FTSE 100 index return is flat or positive since inception.
We will continue to reinvest the funds and add 15%* to the returns each year until the FTSE 100 index provides a flat or positive return since the Fund’s inception. This will continue for up to five years.
Protect your capital in negative markets
In addition, the Discovery Enhanced Yield Fund offers you downside capital protection*. If the FTSE 100 index return is negative at the end of each of the years in the five-year period, we will provide full capital protection* at the end of the five-year period, if the FTSE 100 index has not fallen by more than 40% at any stage over the five years.
However, this capital protection* falls away if the FTSE 100 index fell by more than 40% at any stage over the five–year period. In this case, you will receive the return of the FTSE 100 index at the end of the five-year period if negative.
Please consult your financial adviser to get more comprehensive information on the Enhanced Yield Fund.
*The fixed return and capital protection is before the deduction of fees, such as Discovery administration fees, initial and ongoing financial adviser fees, withdrawal fees and tax, if applicable.
The above information should not be taken as financial advice. For tailored financial advice, please contact your financial adviser.
Discovery Life Investment Services Pty (Ltd): Registration number 2007/005969/07, branded as Discovery Invest, is an authorised financial services provider. Product rules, terms and conditions apply