Bonds(2) Bonds are a type of investment product that vary in the amount of risk involved and the return they offer. Traditionally bonds were considered to be low-risk investments, compared to shares and stocks. These days however, there are investment products labelled as bonds that may be just as risky as other types of investments.
Another traditional perception of bonds is that they only refer to fixed-interest investments or loans given by official bodies such as governments or companies. However, some types of bonds (particularly guaranteed investment bonds and single premium investment bonds) may not actually pay a fixed interest rate and do not offer that type of security for the investor.
The definition of a bond extends today to a wide range of investment products, each with their own inherent risks and potential rewards. This being the case, it is best to treat bonds just as you would any other type of investment, and always scrutinize the terms and conditions involved before making a commitment.
This means always pay attention to the small print as you are putting your money at risk. Bonds vary greatly in the amount of risk they entail, therefore never assume that your initial capital is guaranteed to return.
Consult an Independent Financial Adviser (IFA) prior to any final decision you might make. Depending on your expectations or circumstances, bonds may not be the best investment for you. For an IFA nearest you, has a listing for both corporate and individual clients.

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