It pays to be cautious with CPPI

product design

CPPI is sold as a replacement for with-profits products but it may prove unable to beat current account returns

The more cynical reader could argue that there is little difference between constant proportion portfolio insurance (CPPI) and with-profits products, but I will reserve judgement for now. Whatever the faults of with- profits bonds, they were hugely popular with advisers and investors alike because they promised to deliver a solution to the following type of scenario: "I've saved up/inherited a reasonable sum of money, which I don't really need to spend. I want to invest it in something relatively safe, offering a better return than the building society." For most medium- to long-term inv...