Investment Bonds

Investment bonds offer you the chance to invest in a range of funds for the medium to long term.

They have elements of flexibility that will allow you to tailor your investments in accordance with your financial objectives, whether you’re looking for future growth or income.

Please note that with investment bonds, the value of your investment can fluctuate and you may not get back the full amount of your investment.

What is an Investment Bond?

An investment bond normally allows you to invest in a mixture of funds, usually to produce medium to long term capital growth and/or income.

An investment bond is a single premium life insurance policy and is a potentially tax-efficient way of holding a range of investment funds in one place.

You can usually buy investment bonds from life insurance companies and they can be a good way of allowing you to invest in a mixture of investment funds that are managed by professional investment managers.

Each bond is usually designed to provide benefits for different types of investors but a common element is that they aim to produce long term capital growth and/or generate a long-term return.

Please note that the value of your investment can fluctuate and you may not get back the full amount of your original investment and in some instances, early cash-in charges may apply.

There are often minimum investment levels that may range from £1,000 upwards and can typically be set at £10,000.

When you invest in a bond you will be allocated a certain number of units in the funds of your choice or those set out by the conditions of the bond. Each fund will invest in a range of assets and the price of your units will normally rise and fall in line with the value of these assets.

As an investment bond is a single premium life insurance policy, this means that a small element of life insurance is provided which can be paid out on the death of the investor.

What are the main benefits of an investment bond?

  • Regular withdrawals can be taken.
  • You can choose to invest in a range of funds, you can choose a portfolio, or you can choose a mixture of both.
  • You can usually switch between funds within your bond.

This is based on our current understanding as at March 2015 of current tax legislation and HM Revenue & Customs practice, both of which may change without notice. The amount of tax relief actually received will depend on your individual circumstances.

If you have any questions or would like to arrange a meeting to discuss your investments, please give us a call on 0113 234 5528 or complete the online enquiry form and we will get back to you to discuss your requirements.

The value of investments can fall as well as rise. You may get back less than you invested

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