Investment Bonds
What is an investment bond?
Quite simply, an investment bond is a way of putting your money into a fund or funds over the long term. The bond itself is just a framework. Your money is actually invested in a fund or funds of your choice. A fund is a pool of money that many individuals invest in and is looked after by expert fund managers.
Where does it invest?
The bond invests in funds, which in turn invest in a range of assets. Each fund carries a different level of risk and potential return, depending on what type of assets it invests in. we will, with your help design a portfolio that meets your current needs. Making sure you receive the right return for your level of risk.
The value of your investment and any income you take from it can go down as well as up. You may not get back the amount you originally invested.
How flexible is it?
A bond lets you invest your money to give you potential growth, provide an income or even a combination of the two. It can be a tax efficient way of investing, but this depends on the circumstances of the investor.
As you grow older, your circumstances are likely to change and so will your financial needs. An investment bond is very adaptable. You can move your money from fund to fund, perhaps changing from a growth fund to one that provides you with an income, although there may be a charge or other penalties for this. If you want to, you can take a regular income or take one-off payments from your bond to help with any unexpected surprises.
You need to be aware that if you choose to take a payment from your bond, your capital could be eroded. Also, in the first five years, charges may be incurred for any one-off withdrawal or any regular withdrawals in excess of a % determined by the provider of the original payment in any policy year.
Read our information about Offshore Bonds.
Next steps
Please contact us on 0114 2760200 if you require advice
Make sense of investments
Not sure where to start? If you are looking for answers to your questions about investments, call us to arrange a no obligation appointment.
Investing for the future
ISAs offer tax efficient investment opportunities.
- Invest in a wide range of funds with a stocks & shares ISA
- You don't pay any tax on any interest, dividends or bonuses you get from your ISA. (But after April 2004, you will no longer get the tax credit on dividends from UK companies. There is already no tax credit on dividends from companies outside the UK.)
- If you have a stocks and shares ISA and it increases in value (when you make what is known as a 'capital gain'), you will not have to pay Capital Gains Tax (CGT) on the increase.
- You do not have to include your ISA on your UK tax form.
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