AMP revamps growth bond
AMP has reduced the single management fee attached to its AMP Growth Bond from 1.5 per cent to 1 per cent in a bid to revamp its product offering.
The drop in the management fee includes the removal of inbuilt commissions ahead of the firm’s self-imposed July 1 deadline.
The bond, which is available directly online via an application form, targets investors looking for a simple but effective investment product. The bond also acts as a ‘tax paid’ investment, with tax being paid on investment earnings within the product. For example, if the investment is held for more than 10 years with no withdrawals and meets some simple requirements, the investor only pays 30 per cent tax on the investment earnings — regardless of their marginal tax rate.
AMP Growth Bond investors require an initial investment of $1,200 or $100 a month and can choose from nine investment options, including the capital guaranteed option AMP Cash Plus. Customers can also switch between investment options at any time with no switching fees and without restarting the 10-year rule.
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