BONDS
CREATION OF STABLE INCOME
CREATION OF STABLE INCOME
Bonds are a type of investment that can provide the investor with a steady flow of money, or otherwise a steady income, for a specific period of time. This is essentially a term loan where an investor makes a government or company (bond issuer). The issuer of the bond promises to repay the investor the capital of their investment at a later date known as the bond's maturity date, plus interest (coupons or bond coupons).
- I generate a steady flow of money from bond coupons/coupons
- I easily calculate what the total profit from the bond will be at maturity
- I "lock in" a fixed interest rate for the future
- I diversify my investment portfolio
We need to know the basics:
- Who is the issuer of the bond?
- When does the bond expire?
- What coupon will I get each year on the bond?
- What total profit will I have at maturity of the bond?
- What tax will I pay on the bonds' coupons or capital gains?
- What other costs will I have?
- What rating does the issuer have?
- What collateral does the bond have?
- Are there any special terms?
- Does the bond have satisfactory market liquidity?
- How much of my capital will I invest in it (Dispersion)?
- Together with your investment advisor. Choose the investment advice service, where an investment advisor will take you on to invest in the right bonds for you. Find out about the Investment Advisory service.
- By entrusting the management to us. Choose the service of portfolio management, entrust the management of your capital in bonds to a certified manager of the company. Find out about the Discretionary Management service.
- Deciding for yourself. Choose the Reception and Transmission of orders service, you decide for yourself and we take care of the reception > transmission > execution > custody > update and tax withholding. Find out about the Reception and Transmission of orders service.
1. Open an investment account with HellasFin
2. Transfer money
3. Place the bond purchase order
Bonds are purchased:
- During their issuance ( IPO ). You can buy a bond when it is originally issued by participating in a process called an IPO.
- Through stock exchanges (secondary market). In case a bond has already been issued, you can buy it through a stock exchange, at the price it is trading.
There are many types of bonds with different characteristics. Not all bonds are suitable for all investors. Through a specific process that we will implement together, we will come up with what types of bonds you can invest in. We create your own list of bonds for investment (Suitability).
The costs are structured as follows:
- Transaction Fee: 0.40% on the investment amount and
- Settlement Fee: 0.10% on the investment amount (min charge 15€)
Regarding the more general safeguarding of investors' capital/money:
- Securities and money belonging to clients are registered in HellasFin's custodian, in a client account separate from its own account (implementation of MIFiD's own asset segregation requirement)
- Customer accounts, according to bankruptcy law, are not part of a company's bankruptcy estate, so their contents are not at risk of being seized by creditors
- For investors who have an account in HellasFin's custody account, coverage of up to €30,000 per investor is valid from the *Investment Services Guarantee Fund of Greece.
* The purpose of the Investment Services Guarantee Fund is to pay compensation to investors, in the event of a definitive or irreversible inability of a participating member to fulfill the following obligations:
- to return to investors the funds it owes to them or belongs to them and which it holds on their behalf in connection with investment services, or
- to return to investors securities owned by them and which it holds or manages on their behalf in connection with investment services.
A basic condition for the safeguarding of investors' funds is the orderly operation of the investment company:
- HellasFin has capital adequacy above the minimum required
- Every quarter its capital adequacy is supervised by the Capital Market Commission. The relevant reports are made public
- No credit is provided to customers and transaction costs are prepaid, so there is no exposure to counterparty risk
