|
Savings and Investments
Bonds
Investment Bonds are collective investments in which the investments of many individual investors are pooled. This pooling enables relatively small investors to benefit from the economies of scale made available to institutional fund managers.
A wide choice of funds is available to offer you varied investment opportunities and if you so desire, you can also switch between funds at a reasonable cost. Although this is a single premium investment, a top up facility is allowed, so further amounts can be invested.
With-Profit Bonds usually comprising of a broad spread of stocks and shares, government bonds and commercial property. Suitable reserves are accumulated and used to smooth out any fluctuations and provide a return each year through the additions of bonuses. Once bonuses are added, they cannot be taken away, so the growth achieved is secure to a certain extent.
Although you can usually cash the bond in on demand, most companies will charge you to do so to discourage mass demands which might result from an intense and unpredictable market. A With Profit Bond should be view as a medium to long term investment.
A Distribution Bond is designed to produce income, whilst attempting to avoid capital erosion. In essence this is a single premium life assurance contract, but the life cover aspect is only nominal. . Distribution bonds are collective investments in which the investments of many individual investors are pooled. This pooling enables relatively small investors to benefit from the economies of scale and to benefit from the day to day decisions of professional fund managers.
A Guaranteed Income Bond is a simple contract, guaranteeing a fixed regular income payment for a specific period.
|
