What are the benefits and risks?

Portfolio bond - the benefits and risks

There are specific benefits and risks associated with investment bonds and it's important to consider these when deciding whether a Portfolio bond is right for you:

What are the benefits?

• Growth potential. By investing in funds over the long term, your money has the potential for growth.
• Guarantees. If you select one of our funds with a guarantee, you can get back at least all the money you invested either on the fifth or tenth anniversary, depending on the fund. We also have two funds that guarantee a certain percentage of your original investment on the fifth anniversary - please see our Guaranteed Selection funds. To find out more about our funds with a guarantee you can download a copy of our Portfolio Fund Guide (PDF 291KB).
• Financial strength. You have the peace of mind knowing that Aviva is the largest insurer in the UK.
• Flexibility. You can invest for potential growth, income or a combination of both. You can take regular withdrawals, one-off payments and move money from fund to fund.
• Expertise. You have access to funds from Aviva and other fund providers, plus the expertise of professional fund managers.
• Tax planning. By holding the bond in a trust, you can help to minimise your inheritance tax liability.
• Annual updates. You'll receive an easy-to-follow statement every year to let you know exactly how your investment is performing.

What are the risks?

• Unless you choose to invest in one of our funds with a five or ten year money back guarantee and you move your money out of the fund at the time when the guarantee applies, you may get back less than you originally invested.
• The value of your fund can go down as well as up and any income from it can vary. The amount you will actually get back will depend on several factors: how long you invest for, the performance of the fund you choose, our charges and any withdrawals you may make.
• If you need to cash in your bond or access your money in the first five years, there may be additional charges and you might get back less than you paid in. You can find out more about our charges (PDF 929KB).
• The income referred to above isn't income in the sense that earnings and interest are income payments. All withdrawals from your bond are capital payments. Income tax is payable only when a chargeable gain is made, not on the cash withdrawal itself.

Its important to view this information in conjunction with our Key features document (PDF 120KB)

If you're not sure whether it's the right type of investment for you, we can help you decide.

Want more help?

If you think that an investment bond is for right you, find out more about how to apply for Aviva's Portfolio bond. You may also want to talk it over with a financial adviser, if you don't have an adviser, you can find one in your area at www.unbiased.co.uk.

Or you can talk to one of our advisers on 0800 092 7872*.
We can only advise on our own products.

* Lines are open Monday to Friday 8am - 9pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored.

WC02072 12/2011