With profit investments
With profit investments are life policies that are ideal for cautious investors who have a lump sum to invest. With profit investments are different to normal collective investment funds because the profits are spread out over time to smooth the fluctuations of the stock market.
This means that when the with profit investment is doing well some profits are retained to be used to distribute profits when the fund is not performing as well. Profits are then distributed annually as bonuses to investors.
Because profits are distributed over a long period with profit investments should be used as a long term investment vehicle of at least five years. With profit investments are dependant on the performance of the stock market so it is important to compare different types of with profit investment products to find the best one.
It is also possible to invest in with profit bonds. These differ from normal with profit investment products because they do not rely on the stock market to make profits but offer a product that grows steadily and are even less of an investment risk.
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