Bankinter to launch a fund in October that seeks to protect 95% of capital and provide an alternative investment to the money market

The bank is set to expand its range of funds by launching the new Top Protección fund, which offers among the highest capital protection available in the market and will be sold exclusively through its commercial branch network.

It is aimed at investors with a conservative risk profile who are looking to preserve their capital while at the same time earn a higher potential return without having to switch to a riskier profile.

Investors will be exposed to the performance of a basket of funds picked by Carmignac, an independent European fund manager with over 30 years of experience in the market.

Bankinter is soon to expand its range of funds featuring capital protection. In the first half of October, bank customers will be able to invest in a new fund that seeks to protect 95% of their initial investment, among the highest protection available in the market for this type of product. The features of this new Top Protección fund go above and beyond the two editions of the Fondo Protección launched by Bankinter last year.

The new product will enhance the bank’s existing range of capital protection funds. This type of fund tends to be in great demand among investors and savers with a conservative profile, who have liquidity but are unsure how best to invest it and who have very little appetite for equities. The fund has arisen as an investment alternative for the liquidity of investors and savers.

The Top Protección fund offers capital protection no matter when the customer decides to enter the fund, meaning there is no time limit on when it applies. This protection takes the form of a put option covering at least 95% of the customer’s initial investment.

The minimum initial subscription needed to enter the fund is 100 euros. In addition, there are no entry or exit fees and the management fee is capped at 0.45%.

The fund will be exposed to the performance of a basket of funds picked by fund manager Carmignac. If the market remains stable, the majority of the fund will be invested in the curated portfolio of Carmignac funds while the remainder will be invested in liquid assets. If the trend reverses and the market becomes volatile, the fund protects capital by allocating a larger percentage to liquid assets and the rest to the fund manager's basket of funds.