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JPMorgan launches new ASX 20 product

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Financial services firm JPMorgan has launched a new investment product that allocates money to the 20 largest Australian Securities Exchange (ASX)-listed companies, while offering protection against volatility.

 The product, ASX 20 Growth, provides some downwards protection by locking in 50 per cent of any gains after investors have been invested for at least three years.

"The ASX 20 Growth product suits investors who want exposure to blue-chip Australian stocks, but who don't want to put their savings at risk if share prices remain volatile," JPMorgan executive director of equity derivatives and structured products David Jones-Prichard said.

There was a potential market in newly-established self-managed superannuation fund members, who will drive the demand for capital-protected structured products this year, Jones-Prichard said.

"The SMSF sector is growing quickly as people seek to take direction of their retirement savings," he said.

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"The in-built protection for investors in the product ensures investors can achieve investment returns, while minimising the amount of their capital at risk."

Investors can also gear themselves into the product through a limited recourse loan.