Low Risk:
With-profit bonds and saving plans are long term investments offered by traditional mutual companies with a capital guarantee. The profits of the company are returned as bonuses to the account holders in lieu of interest or dividends. Bonuses are declared and paid annually but the real benefit attaching to with-profits bonds is to allow the fund to run to maturity in order to attract the terminal bonus. The recommended term for these investments is usually 5 to 10 years. With-profit bond-holders, in mutual companies, will almost certainly receive optimum benefits should the company decide to de-mutualise at some point in the future. Local taxes are deducted within the fund leaving the return 'tax-paid' in the hands of the investor.

Traded endowment policies are second hand with-profits bonds, which have been sold by the original purchaser. The attraction for a new purchaser is the shorter term to maturity and the promise of a terminal bonus. Good quality policies are normally available over a 3 to 6 year timeframe. Returns on traded endowment policies are normally subject to capital gains tax.

For the shorter-term investor, a standard bank deposit account offers capital security but, unfortunately, in a low interest-rate environment the returns are poor and, in some cases, may not even match the inflation rate.

Medium/High Risk:
Unit linked funds take a more aggressive position in stock markets, although 'cautiously managed' options are available. Profits are held within the fund and no bonuses are paid. Local taxes are paid within the fund leaving the return 'tax-paid' in the hands of the recipient. Unit linked funds may be encashed at any time but it is recommended that they be held for at least 5 years.

In recent years, a more specialised variety of fund has emerged to meet the growing interest in sectoral categories, banking, bluechip, 'new' technology, etc.

This category has a large variety of products ranging from cautiously managed to very aggressively managed. It is almost certain that there is a fund here to suit your needs. But great care is required to ensure that you pick the right one.

Observations:

• within the risk categories there are many different and varied products available and it is for this very reason that we are deliberately very prudent in the choice of companies we suggest investing with. Considerable care is also taken in matching each investor's risk profile with appropriate products.
• our philosophy is to use high quality companies only and to carefully match products with investor's needs. At all times we endeavour to provide the highest level of personal service.