Guaranteed Bonds
A medium to long-term investment of a lump sum. Returns on the investment will depend on the success of the 'fund' that is managed by designated 'fund managers'.
Features of a Guaranteed Bond may include:
- Annual Bonuses
- Terminal Bonus (on encashment at end of term or death)
- Life cover
- Regular income
- Partial encashment
- No or limited set up charges
- Low annual administration charges
- Option to make additional investments
- Protection from 'high and lows' in stock market
Some are all of the above features can be offered when a Guaranteed Bond is launched. All bond issues are subject to 'Terms and Conditions', which should be clearly understood by the investor before a decision is made to invest.
Main Use / Advantage
For medium to long-term investment of surplus cash. Early encashment can result in poor returns and even a reduction in the capital sum invested. The growth of the investment is determined by the fund manager's success, it can be spectacular or it may do nothing more than guarantee the initial sum you invested
