An investment bond is a single premium life assurance contract although the life cover aspect is only nominal. The bond can be based both onshore or offshore and of course GEM can advise on either type.
Investment bonds are collective investments in which the investments of many individual investors are pooled. This pooling enables relatively small investors to benefit from the economies of scale made available to institutional fund managers.
An investment bond for the right type of investor can be an attractive tax efficient product.
(Investment bonds are commonly confused with fixed term bonds which are usually savings accounts offered by Banks for a fixed time and in return pay a higher rate of interest to the depositor or Corporate Bonds which are usually loans made to companies in return for loan interest and capital repayment of the sum originally lent after a fixed time.)
Investment bonds currently enjoy the facility to switch between funds without attracting a capital gains tax charge and these internal funds switches are usually made at a low cost.
There are many other tax and investment advantages to this type of product although expert advice should be sought to ensure it is right in your personal circumstances as there may be other more advantageous investments to be considered first.
As with all investment products there is also a chance that you may not get back the amount you originally invested
To find out more about how GEM can help you with investment bonds, call us now on 020 8543 0111 or contact us here.
The Financial Services Authority does not regulate some forms of offshore investments.
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© Gem & Co Financial Services LLP 2009