Fixed Interest Investments
Fixed interest investments are never going to provide the greatest performance, but their appeal lies in the fact that they can provide a comparatively safe haven during troubled times.
Collectives can also invest in Fixed Interest securities such as UK Government Stock, also known as Gilt Edged Stock or "Gilts" for short. These are bonds issued by the government which pay a fixed rate of interest twice a year and are considered safe investments as the government is unlikely to go bust or default on the interest payments. However Gilts, like corporate bonds, are bought and sold on the stock market where their price can fluctuate so you are not guaranteed to get all your capital back under all circumstances.
Corporate Bonds are also regarded as Fixed Interest Securities and this type of product usually has little or no equity content whatsoever. A Corporate Bond invests in high yielding, Sterling denominated, Corporate and Government Bonds and this is essentially a loan which the investor, or bondholder, makes to the Company/Government for a fixed period. In return, the borrower regularly pays a fixed amount of interest over the life of the Bond. However, this income paid to the bondholder, i.e. you, is not fixed and may fluctuate.
A Corporate Bond (or fixed interest bond) usually carries less risk than equities or Capital Investment Bonds (which invest in equities), but there is still a degree of risk since Fixed Interest Bonds can, and sometimes do, fall in value. Traditionally, all types of Fixed Interest investment have been regarded as a safe option but it is also important to remember that not only do they fluctuate in price but there is a risk to you, the investor, if the Issuer defaults and cannot pay both the interest (coupon) or repay the principal when the Securities mature.
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
Other Areas of Expertise
Wealth Management
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks.
... Read moreTaxation
Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die.
Taxation can be very complicated and the rules, reliefs and allowances often change
... Read morePensions
When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large inheritance,
... Read more
Mortgages
Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is individually tailored to your needs and requirements?
... Read moreLife Assurance
The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. These people could include family members or business partners.
... Read moreHealth Insurance
Health Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious long-term financial implications for you and your family.
... Read more
General Insurance
This is an area of financial planning that is often overlooked. Traditionally, we have our buildings and contents insurance with our mortgage lenders, which may be uncompetitive in a very competitive marketplace. It may also
... Read moreFinancial Planning
Professional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions about your financial future,
... Read more
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Masons Independent Financial Advisers
6 St. Johns Hill
Shrewsbury
Shropshire
SY1 1JD
Phone : 01743 244288
The guidance provided within this website is subject to the uk regulatory regime and is therefore primarily targeted at consumers based in the UK.
DACO Associates Limited is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register (www.fca.org.uk/register) under reference 586519.
Masons Independent Financial Advisers & Mortgage Port are trading styles of DACO Associates Limited.
Registered Office: 2 Woodside Mews, Clayton Wood Close, Leeds, West Yorkshire, LS16 6QE. ---- Registered in England & Wales No 08072341.