Does High Reward Always Mean High Risk?

Businessman analyzing investment chartIn an online article on the website This is Money Justin Modray of Candid Financial Advice looked at Capital Bonds offering over 8.5% compared to just over 2.4% offered by fixed term five year deals with banks and building societies. AMYMA offer a variety of this type of investment.

In the article he suggests that the reason that some Capital Bonds have such high rates on offer is because they are of significantly higher risk than standard investments.

He notes that these rates may be attractive to retired investors looking for higher returns to combat higher and rising living costs, but also notes that’s these may not be suitable for those investors.

Mr Modray notes that most of these Capital Bonds have performed well in recent markets however that may all change given a downturn in the market.

This article highlights the fact that in the current market place such Capital Bonds are very desirable given the higher levels of income they are able to offer to Investors but that choosing which Capital Bond may be suitable for you is a complex process with many factors which you need to consider when making that choice.

At Amyma, our team of specialists in this market have chosen only the best and most reliable investments to offer to our customers. We do this by subjecting each product we are offered to a series of rigorous selection criteria to ensure that we consider it to be a suitable investment before we agree to offer it to anyone. In addition each product is looked at by our FCA regulated principle firm to ensure that it meets the standards they would expect, this means that anything we offer has been looked at by many experienced people before it comes anywhere near to being offered to you.

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It is important to note that AMYMA is regulated by the FCA but does not offer financial advice of any kind. Most of the products we offer are suitable only for High Net Worth or Sophisticated Investors and are not suitable for normal or retail clients. Many products are not covered by the Financial Services Compensation Scheme which means that should they go wrong you would not be covered.

As you can see investing in Capital Bonds can be a very lucrative investment but it is very important to ensure that the investments you are making are well structured and as safe as they can be. That is why talking to your AMYMA agent could be beneficial if you are looking to make an investment into Capital Bonds.