Bond Pension

[apd]

Hello

I am considering changing the fund into which my AVC go. The two safr oprions that I seem to have are a Cash Fund, with a 2.5% return in the last 12 months or a Long Bond option with a 6% return.

Can someone enlighten me with regard to Bonds? Are these issued by companies or just goverments? Are they safe, in that if a company goes bust what happens, are the bond returns likely to be affected by the recent government commitments?

many thanks

 

[LDFerguson]

First thing you need to do is check the details of the Bond Fund to see what the particular fund on offer invests in - it may be corporate bonds, government bonds or a combination of both.