With-profits bonds have been given a resounding thumbs up from the IFA industry according to a surve...
With-profits bonds have been given a resounding thumbs up from the IFA industry according to a survey involving 250 IFAs throughout the UK.
Over four-fifths of IFAs questioned believe with-profits investments have met or exceeded investor expectations over the past decade.
Futhermore, about three quarters of those questioned reckon with-profits bonds should be part of most balanced investment portfolios.
Prudential, who commissioned the survey, concluded that with-profit bonds are becoming a more important investment option amid today's stock market volatility and falling interest rates.
Of the 250 advisors who took part in the survey, around half had recommended a with-profits bond in the fortnight prior to rsearch conducted and a further third had done so within the past three months.
Almost three quarters agreed that with-profits bonds are a more effective investment vehicle during times of market volatility and low interest rates - both economic conditions currently experienced in the UK.
The figures showed that 88% thought with-profits are a particularly suitable for long term nest egg savings and 78% said they were effective when planning for retirement. A further third recommended them as a way to save for university fees.
The response wasn't entirely rosy though. While 69% said with-profits had attracted undue criticism from the press over the last six months, the need for more transparent contracts was argued in order to improve their popularity in the future.
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