One of the main lures of the capital investment bonds is the peace of mind and the security of individual investors having the ability to invest without the fear of losing all in a bad investment. This particular type of investment tool offers customer the right of choice, flexibility, and the access to a full range of many funds that cross all sectors. Perhaps for some investors this presents a better way to diversify their portfolios and allow for a little breathing room.
The standard capital investment bonds offer a wide range of choices such as the following.
1. The free choice of charging options
2. The ability to withdraw up to five percent in total a year
3. The potential for a reduction in the inheritance tax liability
4. Partial surrender of policy allows for regular withdrawals
5. Unlimited and non-chargeable switching of funds in portfolio
6. The ability of additional investments to your bond
7. The option for a phased investment
Some of the advantages affecting the capital investment bonds are in the tax advantage the individual investor can utilize in their own behalf. The capital investments assure the individual investor with a protection mechanism that will provide beneficial. An investor has the ability to load their portfolio and when the times are good collect the interest accrued. In the down turns of the market the same capital investment portfolio protected not to fall below face value.
Inclusive with this is the fact there is no limitation on investments. This type of bond does have advantages, especially in a down turn market, but again it is the buyer beware and learn all there is to learn before deciding upon an investment. Drawing down on past investments made needs complete attention to all the necessary rules and regulations.
Capital investment bonds on the whole are very promising and offer a respectable rate of return on any particular investment. The risk-government bonds known as the risk-free bonds because it is the government of any country that has the ability to raise taxes across the board to redeem any bond upon maturity.
There are a few incidental charges that will accrue over the years and the individual investor must make the time to investigate what they are and how much. Some can take a deduction of between one percent and five percent off the top. This may add up to a nice sum of money the individual investor would rather keep.