Investors searching for a short-term, index-linked bond that limits risk exposure may be interested in Ark Life's new product, the AIB Index Bond. This 18-month term, single premium bond tracks the Euro Stoxx 50 Index which monitors the share performance of 50 large companies in the euro zone. Some companies included in the index are Fiat, Siemens, Phillips and France Telecom.

Eighteen is the key number for this bond as at the end of the term, the investor receives a return equal to the full rise in the value of the index, to a maximum return of 18 per cent. The investment is protected against any potential falls in the value of the index up to 18 per cent, but exposed to any falls in excess of that.

For example, if a £10,000 (€12,697) investment falls by 25 per cent over the term, the capital on maturity declines by only 7 per cent to £9,300 before and after tax. In the best case scenario, a rise of 18 per cent or more on a £10,000 investment means a pre-tax maturity payment of £11,800 and post-tax of £11,368.

The return is subject to a deduction for tax, currently at the rate of 24 per cent. The investment minimum is £2,000 while the maximum is £250,000. The offer closes on July 30th.