Guaranteed equity bonds are the latest investment products offering stock-market levels of return without the risk. Guaranteed equity bonds are an extremely brainy kind of investment, available through a variety of high street names. Investors typically lock away their money for up to five or six years after which they will receive a certain percentage of the rise in the value of the stock market, measured by the FTSE 100 share index, over given period.

That percentage is typically between 75% and 125%, depending on the issuer. If the market falls over the period, you will get your initial investment back.

On the face of it, that is an extremely attractive combination. The reason that most people don’t invest in the stock market is the fear of losing money.

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