Principle First Sees Rising Demand For Guaranteed Investments
on: May 21, 2010, 10:43 am
Author: Principle First
Principle First reports guaranteed investments are rapidly
gaining in popularity, as many investors who felt the pain
of the recent slump in stock investments seek more stability and
security, moving forward. This follows a noticeably sharp rise in the
number of Principle First clients eager to invest capital but also
looking for the security that guaranteed investments provide.
"Guaranteed investments offer
stability and security to those wishing to invest with no risk to capital. This is a
significant attraction to those who saw the value of their other investments fall
dramatically in recent years, and indeed to those who only witnessed the economic
downturn, and are coming to invest money now." said Gareth Flanagan, Managing
Director, Principle First.
There are a wide variety of guaranteed products on the investments market, one particular guaranteed
investment available through Principle First is the MetLife Guaranteed Investment
Bond. The Guaranteed Investment Bond is a single premium, unit linked insurance bond
that invests in a range of portfolios managed by MetLife.
"Income bonds may suit those who wish to enjoy a monthly income from interest on a
lump sum guaranteed investment." said Gareth Flanagan, managing director of
This type of bond is not invested in the stock market, and may be the guaranteed
investment of choice for those wishing to avoid stock market investments. As
guaranteed investments, income bonds offer the security of knowing that the original
sum is secure and will be returned, combined with the monthly or annual interest
payments on the cash. (Investors can also choose to roll up annual interest, and
take it at the end of the bond's term). These payments are taxable, and can be paid
directly into the investor's bank account.
As is generally the case with bonds, penalty charges are likely to be payable if the
bond is cashed in before the end of its term. From that point of view, income bonds
are suitable only where the investor can do without the cash for the term of the
bond. As Chartered Financial Planners, Principle First offers an
advice service covering all aspects of guaranteed investments to clients.
Fixed rate bonds are guaranteed investments in that they offer a fixed rate of
interest to investors. Cash must remain invested in the bond for an agreed number of
years and interest from the bond can be paid monthly or annually, either into the
bond or into a bank account. Returns on fixed rate bonds depend on the amount
invested, the interest rate agreed, and the term of the investment. Generally, the
longer the investor agrees to leave their money, the better the terms they will
About Principle First:
Principle First Chartered Financial Planners is one of the leading UK independent financial advisers and distributors of
mortgages, insurances, pensions and investments. In 2008, Principle First became one
of the few financial advisers to achieve the status of Chartered Financial Planners,
the UK's 'gold standard' in financial advice.
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