Mini Bonds

chile_paul

Hi all,

I was wondering whether anybody has any experience (or any opinions) on using mini bonds such as the one on the link below as part of an investment portfolio?

Taylor St. Baristas

I appreciate that they are a high risk form of investment as they are unsecured and as such should only form a small part of a portfolio (I'm thinking 2-3%) but the 8% interest rate is appealing.

I can't find much mention of these style of investments on this board, other than reference to the Hotel Chocolat mini bond from a couple of years ago that paid our returns in chocolate!!!

colsten

These sort of investments are fine if you don't mind losing all your money.

jimjames

chile_paul wrote: »

Hi all,

I was wondering whether anybody has any experience (or any opinions) on using mini bonds such as the one on the link below as part of an investment portfolio?

Taylor St. Baristas

I appreciate that they are a high risk form of investment as they are unsecured and as such should only form a small part of a portfolio (I'm thinking 2-3%) but the 8% interest rate is appealing.

I can't find much mention of these style of investments on this board, other than reference to the Hotel Chocolat mini bond from a couple of years ago that paid our returns in chocolate!!!

If you're prepared to invest money in a scheme that has potential for 100% loss of your money for only 8% return, why would you not invest in the stock market where you may have risk of 50% loss but far higher potential returns?

dancing_al

my wife is a non-taxpayer and I have bought her some mini bonds (solar). Is the interest paid out by the bonds treated as the same as interest earned on savings accounts and the tax reclaimable or is it treated as a dividend and not reclaimable