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Virgin warns of rollercoaster bond ride

VIRGIN Direct is calling on investors to exercise caution when choosing UK corporate bonds, following a survey conducted on 41 funds in the sector.



The Virgin Direct study looked at corporate bond fund quartile performance over five rolling 12 month periods between 1995 and 2000.



The survey found that more than two thirds of corporate bond funds with a five year performance record, had an average annual quartile ranking of more than two, indicating a high degree of volatility.



Only seven out of 41 funds consistently had a quartile ranking of less than two.



Virgin Direct claim these results highlight investing in UK corporate bond funds can be a rollercoaster ride and that investors don&#39t fully appreciate the risks they might be taking.

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Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

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