UBS has launched a new series of capital protected units to meet the demand for equity products that guarantee the initial investment.

The investment bank will issue new units of the UBS Global Access Fund, which gives investors exposure to the S&P/ASX 200 Index, over a period of five years.

"With equity markets currently near their lowest levels in three years, opportunities are emerging for investors who are looking to access equity markets with a cautiously optimistic approach," UBS head of retail structured products Mark Small said.

Capital protected products have become more popular as the financial crisis reminds investors of the volatility that is inherent in equities.

Many investors still fear markets could fall again, Small said.

"There is still a lot of fear out there and scepticism about whether this is a strong bear market rally [instead of a recovery]," he said.

Investors can also borrow money from UBS to finance the product through a limited recourse loan.

Unlike a margin loan, this type of loan entitles the bank only to recover the units when an investor cannot pay the loan obligations and protects investors from having to top up their accounts.

Small expects to launch another series of capital protected units in November this year.

The product follows a trend by financial services groups to launch similar products. Both Macquarie and JP Morgan have also recently launched capital protection products.