Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Consider Community College or Online College For Your First Year or Two

Consider Community College or Online College For Your First Year or Two - If you are finding you need the education but don't have the funds, or want to take...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Investment Bond Performance

Investment bonds are used to invest in a wide range of funds and assets with the aim of providing capital growth. Individual investments are pooled together and managed by a funds manager. Investment bonds are usually medium to long term investments greater than five years. They are treated differently than regular bonds in terms of taxes and legal structure.

Investment bonds pay taxes on the interest earnings they accrue and then re-invest the net earnings back into the bond. Because the tax is paid directly from the bond, the individual bond holder does not have to include the income on their annual tax returns. If the investment is held until its maturity, it will pay the value of the bond, plus interest accrued, but less the taxes that have been paid on the interest.

For every bond there is a rating, and even with investment bonds, which are pooled and managed together, the bonds are rated. The bonds are rated with twenty different grades from AAA (the highest grade given) to D. These ratings are an easy way to see which bonds carry the lowest and the highest risk to investors; AAA graded bonds represent the lowest risk to the investor, and bonds graded a D should be avoided. Inversely, the highest rated bonds often also have the least rewards in terms of yield (interest earnings). Many times, lower graded bonds, such as BAA, have higher yields than the AAA graded bonds. Bonds that are graded B or lower are considered highly speculative, and their interest payments are not assured. Even the original investment may be lost. However, these bonds pay far higher interest rates than the more highly rated bonds.

Investment bonds are managed by an individual or a team of financial professionals. It is their responsibility to make sure that they buy bonds which perform to the highest expectations.

Managed investments are convenient for an investor because the manager handles the day to day administration of the investments. Also, the investments are diversified into a range of assets. Through the pooling of funds, managed investments can usually offer a wider spread of investments than is otherwise possible for most investors, and therefore, a lower level of risk.

Discuss It!
1 2 >

write my essay for me cheap said:

Really, a vast part of the custom school piece forming organizations will issue you a paper that is reused from an at one time made piece fulfilled for some other customer. In the same way, a rate of the papers are even copied over the Internet and it transforms into significantly less requesting for an educator to find that it was repeated and is appropriated.

Ethics Case Study said:

Ethics Solution and Analysis, Ethics Solutions, Custom solved according to your need.

Programming Project Help said:

I cherished the way you talk about the point awesome work much obliged for the share Your useful post.||| said:

the investments are diversified into a range of assets. Through the pooling of funds, managed investments can usually offer a wider spread of investments than is otherwise possible for most investors, and therefore, a lower level of risk.

richestcelebrities.org said:

I am surrounding this positive comment for your article.I'm truly energetic to find this site and recognized examining obliging articles posted here.

https://www.youtube.com/watch?v=9c9u3wmkzdE said:

Truly, I have starting now advantage by your examination on risk versus return.This article is had with style and I am giving striking compliment.

see this here said:

Extremely solid data astoundingly the last part I direct to such information a lot.I am essentially affected to see this decision article today.

Aspen Wagner said:

I was generally gutting through the web checking for after down a few information and kept running over your online diary.

tirumala darshan booking online said:

This is an unrivaled than standard posting. The information is completely stunning and genuinely obliging.

Zeal weight loss said:

I have feel this web journal is truly have each one of those quality that qualify a site page to be an one.

HR Assignment Help said:

Fascinating HR assignment help offered by our certified experts is it true that you are confronting issue finishing your human resource assignment.

Assignment Help Provider. said:

Our website is number 1 in Assignment Provider, Assignment Help for University Students in UK, USA, Australia, and Malaysia. You Can Ask Every Thing You Want. Our Team Work 24/7.

https://www.youtube.com/watch?v=Q1sBuZkEdLU said:

I will clearly be coming back to your weblog for more soon.He continually kept looking. I will forward this article to him. Avoiding on certain he will have a delightful investigated.

granturismo car covers said:

Your blogs and every other content is so entertaining and useful It makes me come back again.

free tour stockholm said:

Hypnotizing post. I Have Been contemplating this issue, so an affirmation of gratefulness is all together to post.

getessaynow.com said:

The article has really best my uncommon position. I am going to bookmark your site page and keep up looking new of the case new information.

Bajuband sale said:

I have no deeply idea about investment bond investment bond when i read your article i have it.It is the standard posting.thanks for share it.

how to get followers on instagram | likes instagram said:

So in the event that you wish to get more remarks on your Instagram pictures, try to incorporate individuals in the photos.

MBA Marketing Assignment Help said:

I was looking For that. thanks for sharing kepp it up

MBA Marketing Assignment Help said:

Very useful post.thank you for sharing.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Residual Security

Residual Security - Residual Security is both an interesting and, very effective tool used by many investors and, businessmen in the business industry for diluting the earnings per share on initial stock issued. This is a common practice within the business community in order to increase the number of shares...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com