The AMP Growth Bond is an insurance bond (investment bond) offered by AMP Life.
It offers a number of unique tax benefits compared to other investment product options. These include the 10 year rule where if the investment is held for more than 10 years the proceeds can be withdrawn without Capital Gains Tax or personal income tax being applied. See Insurance Bonds for more information.
Under the 125% rule you can invest a 125% of the initial amount each year and these monies will be treated under the 10 year rule as if they were invested at the start date.
Minimum initial investment – $1,200 or $100 per month via the Regular Investment Plan
Minimum additional investments – $200
Minimum ongoing balance- $2,500
Investment switches – minimum amounts of $250
Minimum withdrawal amounts – $1,000
You can choose to invest in up to nine of the following investment options:
- AMP All Growth
- AMP Balanced Growth
- AMP Moderate Growth
- Future Directions Balanced
- AMP Australian Bond
- AMP Cash Plus
- AMP Small Companies
- Future Directions Australian Share
- Future Directions Property
The AMP Cash Plus investment option is capital guaranteed by AMP Life.
Child Advancement Option
There is the option to invest on behalf of a child under 16 years (the investor does not have to be related to the child). The ownership can be transferred to the child or ‘vested’ at a nominated age (between 10 and 25 years).
Ownership is options include: children between 10 and 15 with parental consent, individuals (16 or over), joint individuals, trusts and companies.
You can nominate beneficiaries whom will receive the proceeds directly from AMP without passing through the estate.
Basic details can be viewed online.
Contribution Fee – Nil
Withdrawal Fee – Nil
Management Fee – 1.0% plus performance fees of up to 25% of the out performance of the benchmark index for the underlying investment manager.
Switching Fee – Nil
Buy/Sell Spread – less than 1%
Planner Servicing Fee – varies
All fees are subject to change at any time with 30 days notice.
Source: AMP Growth Bond PDS Issue 2, 13 February 2010
Disclaimer: Investment product details can change. Please contact the product provider or your Financial Planner before taking any action.