AMP launches investment ‘bond’
AMP has launched a ‘bond style’ product in which tax is paid on investment earnings within the product.
Tax in the AMP Growth Bond is paid on behalf of the investor at a rate of 30 per cent (less imputation credits) over the life of the investment, according to the director of personal wealth management, Andrew Hobern.
“If the investment is held for more than 10 years with no withdrawals, and meets some simple requirements, the investor only pays 30 per cent tax on their investment earnings regardless of their marginal tax rate.
“Since tax has already been paid within the product at a rate of 30 per cent, investors do not have to declare their investment earnings in their tax return.”
Hobern said the product allows investors to “achieve their savings, investment and financial goals, and would suit an investor looking to save for a big ticket item such as a child’s education in a tax effective manner”.
Investors can choose from nine competitively priced investment options designed to suit different risk profiles — from conservative to aggressive, he said.
The bond also offers a capital guaranteed investment option, AMP Cash Plus, for investors “wanting peace of mind in the current market volatility”.
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