Will I Get a Good Return on Investment Bonds?

Patrick Finnemore
In the quest for a type of investment that will give you a great return, Investment Bonds have become a really popular form of saving. Why should this be so?What is the reason for this? There is a range of factors to account for their great success, A good point to start an explanation of the growth of Investment Bonds is to give a definition of what they are. In a nutshell, they are investment plans sold by a life insurance company or other financial services provider. Investors pay in a lump sum, which is invested in one or more collective funds. They are potentially an attractive tax-efficient way of holding a range of investment funds in one location.

One of the powerful advantages is that they are professionally managed. They are frequently designed to produce long term capital growth, yet can also be employed to generate an income. It is clear that the global financial crisis is having an influence on the investment bonds market. Despite the current challenges, providers can still find consumers who are seeking out safer investment options that may give them a big return. A key aspect of the Investment Bond market is that the lowest investment is about five thousand pounds. These types of bonds are viewed as medium to long-term investments, typically greater than five years. A further reason for the popularity of investment bonds is that they can be used as a means to mitigate inheritance tax and personal tax. While it may be true that bonds are never going to be the most thrilling part of the world of investment they still have a place in a great many investment portfolios. They provide more stable returns than those offered by the stock market, so they are a possible option for prudent investors or those whose portfolios are already risky enough. The snag is that profits can be greater elsewhere, but a smart selection of bonds should still outperform cash in the longer term.

In conclusion it is up to every individual investor to ascertain the relevant facts about Investment Bonds to determine whether or not they meet all the requirements. One should take into account the unpredictability of stocks and shares in recent years and the fact that prices can go up as well as decrease. The scale of risk that you may expose yourself to is an important consideration for any investor. You have to go with a level of investment that you are comfortable with. It is therefore extremely important that you research the available alternatives before you make a final decision. After all it is the choices that you make at this point that will decide what you get back later so time and care should be devoted to looking for the most suitable deal that you can get. It is hoped that this explanation of what an Investment Bond is and what it can do for you will give you with a handy basis with which to come to the decisions that will have massive implications for your future and financial well-being

Scottish Friendly offers a range of financial goods and services including Investment Bonds.
Article Source: ArticleRich.com

This entry was posted in Personal Finance, Retirement Planning. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

3 + 17 =