Spotlight On: Barclays stockbrokers' UK 5x Supertracker

The deal

Barclays Stockbrokers says it is offering those who think the market has hit bottom the chance to make a return five times any rise in the FTSE 100 Index over the next five years.

The good points

None.

The bad points

This is a so-called structured product that neither gives investors the best returns or helps them avoid risking their capital. The amount of growth you can get is limited to 80 per cent of your investment which effectively means that if the Footsie grows by any more than around 15 per cent in the next five years, you won't benefit from it. The detail of how returns are calculated really is far too complicated to understand.

Conclusion

Structured investment products are confusing. They appear to offer stock-market-linked investments with a degree of safety but limit the amount of growth you can get while not always protecting your capital. If you want to punt on shares, do so directly. If you want a lower-risk home for savings, consider bonds or deposit accounts.