Corporate and UK Government Bonds
On the investment risk scale, bonds – sometimes referred to as fixed-income investments – typically sit between cash and shares. Bonds however, come in a variety of guises. We look at what you need to know.
Cash and bonds
Whether you view your money as nothing more than the means to an end or the ultimate security blanket, one thing's for sure, you need to look after it.
The value of investments can fall as well as rise. You may get back less than you invest. The value of investments can fall as well as rise and you could get back less than you invest. If you're not sure about investing, seek independent advice.
Cash is a low-risk investment. A bank repays it on demand in most cases and even pays you interest.
When you invest in a bond, you're effectively lending money to the provider. Your money is at risk because there's a chance that the issuer won't be able to make repayments. Bonds tend to pay a fixed interest rate, although some returns are linked to a benchmark such as an index.
The returns are potentially higher but you'll need to deposit your money over a longer period. And, if you sell a bond before it matures, you might get back less than you paid for it. If the bond issuer can't repay you, you can lose all the money you put in.
Investments explained
You can choose from thousands of investments to build a portfolio to match your needs, and with our expert insight, tools, tips and more, we can help guide you on your investment journey, although we can’t advise you on investments that might be suitable for you.
Exploring investments on Smart Investor
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Ways to invest
Always remember that investments can fall in value. You may get back less than you invest.
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