Investment bonds are provided by Life Insurance companies and are sometimes referred to as ‘wrappers’, much like an empty bucket that you fill with the various collectives that you want to hold in one place. This type of bond has several advantages:
- All administration of the funds is collated in one place
- The life company has a certain buying power in order to purchase funds at greatly reduced costs
- The mitigation of some taxes – for example, Capital Gains Tax when you transfer between collectives or indeed Inheritance Tax.