Investment Bonds

Investments come in many forms - stocks, shares, corporate bonds, property, cash, government gilts. Each one carries its own risk and provides a different return - for example, in the third quarter of 2001 many stocks and shares provided very poor (if indeed any) growth and in some cases they even fell in value. In the same period Government gilts gave very low returns. All of these investments have their own place in the investment market and for those who like the potential of high returns and are willing to take the risk, stocks and shares are potentially the best investment vehicle. Those of a more conservative nature who wish to avoid as much risk as possible and are happy with potentially lower returns, would possibly be better with gilts.

There is a middle road, namely BONDS. These too, take many forms such as Capital Investment, Distribution, Deferred Distribution, With Profit, but what they all have in common is the fact that they all are made up of a mixture of investments - for example, an average Distribution Bond might have up to 65% UK and European stocks and shares(equity) with the remaining 35% made up of cash, property, and government gilts. Because of this strategy of investing in a variety of markets, it caters for the investor not wishing to place "all of his or her eggs are in the same basket."

Within bonds, Funds are available that specialise in particular sectors, but these funds are designed for those who wish to invest in one type of market (even if this is part of a larger overall strategy)..

As an investor you have units within the bond (as opposed to stocks and shares) and the value of the bond's units are dependant upon the growth of all of its investments and because of this, it should mean that the growth is less erratic than shares but often better than gilts.

One specific type of bond is a With Profits Bond and there are more details about this type of investment on our With Profits page. Here at Lewkay Financial Services, as Independent Financial Advisers, we are able to take an unbiased view and offer advise based upon your individual requirements in order to provide you with a suitable investment.

If you wish to know more about bonds, or have any questions regarding them, please contact us via the questions section of our secure enquiry form. IT COSTS NOTHING TO ASK AND THERE IS NO OBLIGATION.

Lewkay Financial Services
3c Sopwith Crescent, Hurricane Way, Wickford SS11 8YU
* Tel: 01268 762200 * FAX: 01268 762292

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