What are not specified investments?
Non-specified Investments are defined as follows: Non-specified investments are any other type of investment (i.e. not defined as Specified above). The identification and rationale supporting the selection of these other investments are set out below. Ref. Non Specified Investment Category.
Specified Activity
Explanation. Dealing with an investment as an agent or principal. This refers to if you buy, sell, or underwrite investment securities. Arranging deals in investments.
“Specified” Investments identified for the Council's use are: • Deposits in the DMO's Debt Management Account Deposit Facility • Deposits with UK local authorities • Deposits with banks and building societies • *Certificates of deposit with banks and building societies • *Gilts : (bonds issued by the UK government) • * ...
Products of the National Savings and Investment Bank, such as Premium Bonds and National Savings Certificates, are not specified investments. Other common investments such as land, wine, stamps, art and vintage cars are also not specified investments for the purposes of the act.
- Certificates.
- Exchange Traded Funds (ETFs)
- Exchange Traded Notes (ETNs)
- Futures (Extended Settlement Contracts)
- Structured Warrants.
- Callable Bull / Bear Contracts (CBBCs)
Specified Fund means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,—
However, these funds carry the risk of changing interest rates. If the interest rates rise sharply, the NAV of a Gilt Fund falls drastically. Since the gains from a Gilt Fund depend on the interest rates changes, they cannot be guaranteed.
Corporate bonds are issued by corporations and gilts are bonds issued specifically by the government. There are different types of gilts, but the majority are conventional gilts. These normally pay a fixed coupon twice a year and mature on a set, fixed date in the future.
A kind of mutual fund, Gilt Funds are of two types – long-term and short-term securities. While they are considered safe as compared to other options, the returns are also quite low.
The consistent winners are the 1.16 million people who have the maximum £50,000. They hold almost half of all premium bonds and, at current odds of 21,000:1, can expect a monthly stream of tax-free prizes: two a month and three almost every other month, 28 or 29 a year totaling £1,860.
What is the disadvantage of Premium Bonds?
The worst-case scenario is that the bonds purchased are never chosen in a prize and the amount in the account remains the same. Disadvantage: Losing value instead: Though the numerical value of your savings cannot decrease unless you make a withdrawal, the real-term value of it can.
NS&I says: Our Agents Million always visit £1 million Premium Bonds jackpot winners in person.
Specified Investment Products (SIPs) are complex financial products that have structures, features and risks that are more difficult to understand. To safeguard the interests of retail investors, MAS implemented measures to ensure that investors understand the complexities and risks involved in trading SIPs.
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Bonds.
- Money market funds.
- Mutual funds.
- Index Funds.
- Exchange-traded funds.
- Stocks.
The most successful investors invest in stocks because you can make better returns than with any other investment type. Warren Buffett became a successful investor by buying shares of stocks, and you can too.
For a given taxation year, a specified investment flow-through trust (also called a SIFT trust) is a trust that is neither an excluded subsidiary entity nor a real estate investment trust but that meets the following conditions at some time during the year: The trust is resident in Canada.
- Transaction of purchase, sale/exchange of goods or property or right or interest in a property.
- Transaction for rendering any service.
- Transaction under a works contract.
- Transaction by way of an investment made or expenditure incurred.
For taxation purposes, a specified mutual fund is defined as a mutual fund which invests less than 35% of its proceeds in the equity shares of domestic companies.
A gilt is a UK Government liability denominated in sterling, issued by HM Treasury and listed on the London Stock Exchange. The term “gilt” or “gilt-edged security” is a reference to the primary characteristic of gilts as an investment: their security.
Gilt funds are debt funds that invest primarily in government securities. These funds have no risk of non-payment of interest or principal amount but get affected by interest rate movements as the Government borrowing typically happens to be for a longer duration.
When should you invest in gilt funds?
Once rate cuts start, lower bond yields will follow. And when bond yields go south, increase in bond prices follow. Consequently, long duration and gilt mutual funds tend to rise. “If the investor believes that the interest rate will go down and they want to bet on it, it is advisable to add duration to the portfolio.
Disadvantages of Gilts
Inflation Risk: Inflation erodes the purchasing power of future interest and principal payments, potentially impacting the real return of Gilts. Interest Rate Sensitivity: The value of existing Gilts can fluctuate with changes in interest rates.
Gilts, due to generally being perceived as low risk, offer lower returns than other assets. You could get better performance from investing in a corporate bond or other asset although these can be higher risk.
If I have a better credit rating, I might be able to get a lower interest rate than the average borrower. The government borrows money using bonds called gilts, which earned this name as they originally had gilded edges. Bonds and loans are very similar.
| Rank | Name | ISIN |
|---|---|---|
| 1 | UK(GOVT OF) 0.25% BDS 31/01/25 GBP1000 | GB00BLPK7110 |
| 2 | UK(GOVT OF) 0.125% SNR 30/01/26 GBP1000 | GB00BL68HJ26 |
| 3 | UK(GOVT OF) 0.5% SNR 22/10/2061 GBP1000 | GB00BMBL1D50 |
| 4 | UK(GOVT OF) 5% SNR 07/03/2025 GBP1000 | GB0030880693 |
