02: Clearing up the confusion

An investment bond is essentially a wrapper giving access to a range of underlying funds, and should not be confused with the other type of ‘bond’ - which is a blanket term used to refer to various types of fixed interest securities.

Another common source of confusion is that an investment bond’s underlying funds are often referred to as bonds in their own right. Someone who has invested in an investment bond’s with profits fund, for example, is often described as having a ‘with profits bond’.Last Updated