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Aim To generate stable capital growth over the longer term from investment in zero dividend preference shares.

Bells & whistles Gartmore says: 'In times of market volatility there is a need for a relatively safe and steady investment option. With low risk and steady capital growth, we believe this fund can be an excellent way of saving and planning for future expenses such as school, university or mortgage payment.'

How it works Richard Prvulovich, Gartmore's senior investment manager, will include about 35 zeros in the fund, which have been chosen to produce an estimated gross redemption yield of 8.4%, which amounts to 7% after charges. Zeros are a type of share offered by split capital investment trusts. They come first in the queue for a share in the assets when the trust is wound up, and are entitled to a pre-determined amount of capital but no income. The fund offers a monthly withdrawal option for bigger investments, which pays out capital from your investment as tax free regular income provided you do not exceed your annual capital gains tax allowance.

Minimum Isa £3,000 lump sum, unit trust £1,000, monthly savings £50 in either. You must have a minimum of £10,000 invested to qualify for the monthly withdrawal option.

Charges Initial 1.5%, annual 1.5%, taken from capital. There is an exit penalty of 1.5% if you cash in your investment within the first five years.

Tax Tax free through the Isa or Pep transfer, may be liable to capital gains tax if held directly.

Risk Low

Should you invest? Tim Cockerill of the Bath-based independent financial adviser Chartwell says: 'I think zeros are brilliant, but looking at the figures for this fund, I think it's too expensive. You are giving about 20% of your return back to Gartmore in charges - that's too much. I think 0.5% would be more appropriate. 'The best thing about it is the monthly withdrawal option, because that would be difficult to do if your were buying zeros direct through a stockbroker.' Chris Macdonald at the London company Brooks Macdonald Gayer agrees: 'The concept is good because a lot of people don't have the time or expertise to buy their own zeros, and I like the monthly withdrawal. 'But 1.5% is stonkingly expensive.'

Points out of 10 Cockerill - 3, Macdonald - 2