Norwich Union has announced a new tranche of guaranteed investments fund.

Designed for more cautious investors, the investments fund guarantees that the return of the original sum invested in fund after a five-year period.

Commenting on the new product, Neil Davies, head of investment at Norwich Union, said: The guaranteed fund is popular with cautious investors who want to invest in the stock market but don't want to take too much of a risk with their money.

Norwich Union also states that the fund invests in a wide range of areas, such as UK and internationally based assets, bonds, property and cash .

However, the guaranteed return only applies on investments that are withdrawn on the fifth anniversary. Should customers withdraw money before or after this date, Norwich Union does not guarantee that the original sum will be returned in full.

When launched, between 40 per cent and 45 per cent of the fund will be invested into equities and property – However, Norwich Union does state that this may change in the future.

Investments for the fund are required to be a minimum of £5,000.