Bonds
Government bonds, or gilts, carry the lowest level of risk when investing and any capital gain on gilts is tax-free and with current levels of economic instability, they have become popular.
Bonds pay a fixed income, which rises in value and offers far more security than investments or shares, but also a lower return.
Corporate bonds have done well this year with a total return of around 11 per cent, outstripping the 1 per cent return on government bonds this year.
With deflation looming, pension funds are looking more towards the safer option of bonds. A full analysis is available each month in Money Observer on which bonds you should invest in and a comprehensive list of which bonds to buy and sell. We also analyse the market to advise you on alternatives to investing in bonds and how the economic market will affect your savings.
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