Investment bonds are life insurance policies that do not bear much resemblance to corporate bonds or fixed rate bonds or premium bonds. These aren’t bonds; they are more of an investment fund. It is very important for an investor to ascertain his present condition and ask himself a couple of questions before he ventures into the purchase of investment bonds. The first thing is that the investment bonds uk purchase is not the best way to come out of debts. If the investor is debt-ridden, he should avoid taking this path to alleviate his financial hassles. There should be enough capital for the investor to continue purchasing for a few months. He should not have many people dependent on him and even if he does, they should be insured against injuries and accidents. These are the few things that an investor needs to adhere to before investing in corporate bonds and investment bonds. With the introduction of RDR, investment bonds, especially investment bonds UK have received little or no attention from advisers and investors alike. Since the purchase of investment bond is a more trusted source of investment compared to other kinds available, the predominant wrapper in the case of investment bonds has been the trust factor. Although the RDR has had its share of effects on the investment bonds UK such as the stoppage of commission payments for new businesses , investment bonds UK still remain a tax wrapper irrespective of the introduction of RDR. The investment bonds uk and corporate bonds are the property of the insurer and it is he who determines his returns depending on the risk he is willing to undertake. The fund level taxation includes the fact that the bondholder is taxed only for a chargeable event and the fact that the investment bonds UK are a simple way to invest money and reap the benefits is the biggest advantage for it. The returns in case of investment bonds are not substantial although the money is comparatively much safer. The corporate bonds are the riskier sterling-dominated bonds that are traded in sterling but include issuers from all parts of the globe. These issues include corporate houses, banks and entities from various regions. The main drawback and the main advantage of buy corporate bonds are inter-related. The fact that these are riskier than gilts and any other government bonds makes it a tough deal for investors. However, those who like to take the risky plunge benefit the most when they buy corporate bunds because the returns are comparatively much more substantial. With the increase in investment opportunities in UK, buy corporate bonds and investment bonds UK has taken a slight step backwards. However, the fact that the investment bonds are a reliable long term investment still finds many takers. At the same time, buy corporate bonds is still a profitable affair for those traders and investors who are willing to take the risk and reap substantial profits. Therefore, despite all the investment opportunities that UK has to offer, bond purchases still occupy a pole position.
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