A NEW tracker bond seems to appear every week the latest offer is the Seventh Tracker Bond Series from First National Building Society.

Two stock market indices the US Standard & Poors 500 and the Nikkei 300 underlie this latest bond which guarantees the capital sum (a minimum £3 000) a guaranteed 25 per cent gross return at the `end' of tile five years and nine months and a potential maximum return of 75 per cent of the initial investment. Early investors (i.e. those who invest before the closing date of March 26th will get a five per cent bonus from the date their funds are lodged.

A good rule of thumb when frying to work out the merits of these tracker bonds is that the higher the underlying profit guarantee (in this case a 25 percent guaranteed return), the lower the total amount you twill be allowed to receive from the overall performance of the markets. Investors who do not want a guaranteed profit return may prefer to buy into other trackers which allow you to enjoy loo per cent or more of any stock market performance.

Finally, Mr McB wrote in recently to ask why so many senses tracker bonds are released over a period off months by thee same companies. "Why don't they just leave the bond open ended rather than keep bringing out what appears to be the same product every two or three months?"

In fairness to the institutions concerned there are usually some subtle differences between the bonds usually there is a different combination of indices, even from the same country. The deadlines are also necessary since the investment funds need to be in place before the bonds are actually issued.

Still, the clever marketing of these products must not be underestimated either. Short closing dates are, meant to heighten the sense of urgency for investors buy now and avoid disappointment is applied as much to the sale of sophisticated financial products as to washing machines or sun holidays.