IRISH Life has announced that it intends to offer six new tracker bonds in 1996, starting with the Guaranteed Equity Tracker (GET) Series 1.

The new bonds are expected to come out every two months and will offer investors two options - either to go for heavily weighted capital and profit guarantees, but at the price of overall lower growth potential, or the choice of a bond with less guarantees, but with a greater potential for growth. The first option, says Irish Life's Savings and Investment Manager Aidan O'Donnell, will probably suit cautious investors who "we believe would be content with lower fund levels of guarantees in return for a `gearing up' of their returns."

Series 1 GET includes the `deposit growth' and `maximum growth' options. Under the `deposit growth' one, you are guaranteed the return of your capital (minimum £5,000) plus a guaranteed return of 25 per cent at the end of the six year term, plus exposure to Japanese and European markets. The overall return is capped at 100 per cent of any growth.

Under the `maximum growth' option you are guaranteed your original capital back, plus up to 200 per cent of the growth in the Japanese and European markets with no upper limit, but this rate of participation depends on the markets growing by the equivalent of 12.2 per cent per annum over the six year term. If markets perform at less than this level, the participation rate will still be 140 per cent, that is, for every 10 per cent rise in the markets, this bond will return 14 per cent. According to the company, "the maximum growth option offers investors a unique way of out performing the markets without having to take any capital risk."

Irish Life has produced a table which shows the sort of pre tax returns you could expect from each GET Series 1 investment option at the end of the six years. The illustration assumes a £10,000 investment. Tax is charged at 27 per cent.

Tracker bonds can be an attractive addition to an investment portfolio, since they combine capital guarantees with equity growth potential. Trackers that offer higher growth options, like this latest one from Irish Life are also an attempt to reflect the stronger stock market climate and the steady interest rate situation.

Investors should always seek out independent advice and compare products before committing their funds, especially amounts over £10,000.