Need info on Distribution Bonds
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lukas
Apprentice
Joined: 07 Sep 2008
Posts: 1
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 Posted: 07/25/09 - 04:19 Post subject: |
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I am thinking about investing and need info on Distribution Bonds. I would like to know how they work and how much could I get. What does growth depend on and is there any influence of inflation on it? Are they considered as a safe way of investing? Are there some features about them I should pay special attention to?
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olivero
Apprentice
Joined: 03 Jan 2007
Posts: 1
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| Posted: 08/24/09 - 01:45 Post subject: |
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| Distribution bonds are designed for providing income without some larger affects on your investment. If you have some tax-free investments they would prevent those investments for lowering your initial investment. That's why these bonds are considered as good way of long term investment. It's an investment which combines equities and bonds and some people say that they are the best of both worlds. Even 60 of your investment in Distribution bonds could be invested in equities and that's why they could turn to be risky. Other part of bonds are invested in reliable investments which could cover for any difficulties. The mimimal amount you can invest in these bonds is 5000 pounds but overall limit of investment is not determined. Return would vary since these bonds depend on market so you would not be sure what would your income be in every payment you get. You shouldn't expect a great growth, but at least some kind of growth is guaranteed. You can choose to receive your payments monthly, every three months or every six months. When making this kind of deal make sure that you have read the small print because you should know tax issues, redemption penalties and other facts related to payment. |
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