Personal investment plan. Good plan?

EdInvestor

I'm not sure if there are any catches with the product itself..

You mean apart from the fact that it's an investment bond with the following features:

1.Extortionate charges (8% upfront)
2.High taxes - 20% on gains
3.High penalties for exit before 5 years
4.Risk of capital depletion due to poor returns, high charges and income withdrawals from capital

AVOID

cheerfulcat

3.High penalties for exit before 5 years

No exit penalties on this one...

whambamboo

EdInvestor wrote: »

You mean apart from the fact that it's an investment bond with the following features:

1.Extortionate charges (8% upfront)
2.High taxes - 20% on gains
3.High penalties for exit before 5 years
4.Risk of capital depletion due to poor returns, high charges and income withdrawals from capital

AVOID

1. Where do you see that?

What are the charges?
• There are no initial charges and no exit charges.

2. How does that work?

3. Where do you see that?

What are the charges?
• There are no initial charges and no exit charges.

4. How do income withdrawals from capital hurt you? If you have £1000 and it has 3% growth and 3% yield, then if you invest the yield and take out the growth, it's the same as investing the growth and taking out the yield.

Agreed on poor returns, but perhaps I'm not entirely understanding the charging, it seems they charge 1.25%, which is below many competing UTs and OEICs.

I'm reading from
http://www.bosinvestment.co.uk/pages/pdfs-pip/$file/pipkfd.pdf