Investments

Investments Bonds and Trusts

There are several types  of investments, some which involve risk others that are risk free. Before you enter the investment market you need to look at the pros and cons of the different products. Our aim at Money Discount Centre is to guide you to the investment that is most suited to your needs.

Growth bonds a risk free investment and as such, the returns are lower. The term is fixed and early closure of the account will incur penalties.

Those who wish for a regular income from their savings can benefit from an Income Bond. These are also risk free, in that your money is safe, but if interest rates were to rise you would be unable, without the risk of penalties, to move your investment to a more profitable account.

Compare Investments Bonds and Trusts.

Stocks and shares ISAs attract those looking for a fairly long term investment. Taxes are lower on dividends paid but they do incur administration costs. Remember that the value of the ISA can go down as well as up.

Unit Trusts are for long term investors. A unit trust is a collective investment constituted under a trust deed. There are many contributors to the fund  which is managed by a fund manager who then buys and sells shares and government bonds on behalf of the investors. The risk element of the investment is low as the money is spread over a wide variety of shares and other types of investments. The management fees are considerably lower than if you were to pay for the dealing costs yourself.

An endowment policy is a savings policy combined with life cover. It is a long term investment, the minimum being ten years. At the end of the term, the benefit is tax free. Surrendering the policy early will incur charges.

As with all aspects of finance the choices are varied and it is sometimes difficult to compare like with like. Many products which appear similar may have subtle differences. Money Discount Centre can help you find the investment that is right for you.

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