What is an Investment Bond?
Investment Bonds
Investment bonds provide a way to invest in a range of funds managed by professional investment fund managers. They are sold by life insurance companies and have the aim of either producing long term capital growth, or generating an income.
A growth style investment bond is not the same as a guaranteed growth bond, and an income style investment bond is not the same as a guaranteed income bond. These are explained separately below!
An investment into a bond is often used to purchase ‘units’ in a fund of your choice. Choosing the right fund is very important so we recommend you speak with one of our expert investment advisers who will be happy to help you make the right decision.
Each fund holds a portfolio of assets, often shares or corporate bonds . Movements in the value of these assets are reflected in the price of your units.
Investment bonds are a great way to invest for people in a number of different situations. To find out if they are appropriate for your individual needs, it is sensible to speak to an expert.
For more information on investing in bonds please speak to one of our investment advisers about more information on UK investment bonds
Please follow these links for more information on self selected Guaranteed Growth Bonds or Guarenteed Income bonds
Investing your money in bonds can be a very good way of increasing the value of your investment over a fixed period of time.