You may be relying on your AVC to provide an important source of income in retirement, so it’s vital that you invest it wisely. There are many options available to you, from low and high-risk funds investing in particular types of assets, to managed or mixed funds investing in a spread of assets where you choose the funds or assets in which you invest.
The funds you decide to invest in should offer you a diversified range of investment options that can meet your changing circumstances over time. Any choice you make should be based on the level of investment risk you are comfortable with and should take into account your financial circumstances and goals. It is important to understand that the value of your AVC can fall as well as rise, depending on which funds or assets you invest in. You should always seek advice from a trusted pension advisor who will help you decide how and where you should invest.
With help from a trusted pension advisor, you can create a diversified range of investments within your buy out bond