Where cautious investors should look to put their money

Guaranteed investment bonds protect investors' original capital and are taxed as part of income, making them a superior alternative to a deposit account which offers exposure to equities

For many years long-term cautious investors were advised to invest in stocks and shares. In the 1990s stock markets around the world were buoyant and many investors were making sizeable returns, and so could be forgiven for thinking that stock market investment was a win-win situation. But then, as the millennium approached the atmosphere changed. The bull market came to an end and stock markets around the world tumbled for three consecutive years. Investors' main issue with the stock market moved from being what returns they could get to what risks they faced. Since we crossed this attitu...