with profits bonds

betty_parkinson

have seen my investment with standard life with profits bond lose 30% of original investment in 1st year should I sit tight and hope it goes back up or cut my losses

turbobob

Is the 30% including an early surrender penalty for cashing in within the first year?

Iconic

With Profit Bonds are long term investments and if this was not made clear to you should make a complaint to your advisor.

In theory you should never lose money with a With Profit Bond. You will find that the 30% is a MVR which has been applied because the stock market has had a bad time over the last year.When the stock markets are on the up the MVR is taken away and your bond will be in profit.

Your bond might have a get out clause after so many years when no MVR will apply.

dunstonh

Nowadays, there are really only two viable with profits funds. NU and Pru. Std Life's WP fund is not an investment I would want to be in. However, as you are in it, you may be best to wait until the MVR is removed. Or, it may be that the guarantees in place do suit your requirements more than a unit linked investment.