Investment bond

 

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Investment bond

A unit linked single premium whole life assurance policy. Part of the premium gives life cover whilst the balance is invested in unitised funds. Under certain circumstances, since the bond is a life policy, certain tax advantages may be enjoyed. For example if the capital and annual interest are reinvested in full, there is no immediate liability to higher rate tax. If the proceeds of the bond are subsequently taken when a former higher rate taxpayer has become a basic rate payer, there is no higher rate tax liability.



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Protected investment products

Protected investment products

Protected Investment Products, or 'PIPs' are designed to give you a guaranteed return on your investment but at the same time to give you the opportunity to benefit from rises in the stock market. The 'protected' return might, for instance, be 4.5% per year fixed for 5 years. Even if the product's underlying index performs badly, you will receive that return. If the index performs better than the minimum return, you get a bonus payment at the end of the period. The PIPs offered by financial institutions vary according to the level of protected return, the underlying index, the terms of the bonus, and the duration of the investment. Some aim for 'safety first'; others are geared towards greater upside. In general, though, they will appeal to medium term investor who want to avoid being completely exposed to the gyrations of the stock market.


Investment certificate

Investment certificate

A document that serves as proof that an individual has an investment in a savings and loan association.


Investment advisory service

Investment advisory service

A business that specializes in providing investment advice for a fee. All advisers of an advisory service must be registered with the Securities and Exchange Commission.


Capital investment

Capital investment

See: Capital expenditure.


Registered investment adviser

Registered investment adviser

SEC-registered individual or firm that substantiates completion of education and work experience in the field, and pays an annual membership fee.


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