Bonds to prove fruitful investment for years to come

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Bonds will prove to be one of the most attractive investments opportunities in the coming years, according to financial analysts Defaqto.

The company believes that the potential growth for investors is due to rising property prices and demographic changes.

Defaqtos first review of the offshore and onshore bond market for UK investors predicts that there will be continued interest among consumers for these investment products for the foreseeable future.

According to Defaqto, two factors are driving this growth; the first is that rising house prices have brought about a greater need for estate and inheritance planning, while the second is that, for offshore bonds specifically, there has been an increase in UK citizens migrating abroad.

"Bonds offer so many advantages in financial planning that I am not surprised that the market is powering ahead," commented Fraser Donaldson, head of investment at Defaqto.

"The ability to switch investments within a bond with no Capital Gains Tax issues is one of the key reasons why Bonds are a useful investment vehicle for tax planning."

He added that bonds should be one of a number of investment options for all homeowners, as rising house prices have resulted in estate planning not just being an issue that the wealthy have to consider.


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