Moneyspider in the News
17/06/2007
Bond meltdown: how it will hit your investments.
The Sunday Times
Over five years, some investors would have been better off in a high-interest bank account than one of the poorer performing bond schemes.
A £5,000 investment in Virgin Money Income fund would have returned just £600 in the five years to the end of May, according to Moneyspider, a research firm, a return of just 12%.
Investors in the HSBC huge £695m Corporate Bond fund would have scraped a profit of £843 - or 17%. Halifax's Web Saver account, which pays 5% interest, would have paid out £950 after a basic-rate tax over the same period, beating returns from many bond schemes..
Bill Ross at Moneyspider said: "Many savers have been putting money into corporate-bond funds because of the attractive income without understanding the risk to their capital. Bond funds are having a tough time. Investors should be aware this could lead to big capital losses."
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