Bangkok Bank > Personal Banking > Investments / Fixed > Pros & Cons Pros & Cons of Investment   Bank Deposit Debt Instrument Mutual Fund Risk Low, however, depends on the credit of the bank Depends on the credit of the company Depends on the investment strategy Return Low, but reliable Usually higher than a bank deposit, depends on credit rating and the time to maturity Depends on the investment strategy Special features Offers a specific return for a specific period e.g. 3-month fixed deposit offers 2.50%      12-month fixed deposit offers 3.00% Offers reliable cashflow streams throughout the period in which interest is paid There are three major groups of issuers: Government : offers the lowest risk & lowest return on bonds with a very active secondary market. State Enterprises : offer a higher return but a higher risk but the secondary market might not be active for some bonds. Corporates : has the highest risk & return, depending on the credit of the issuer Managed by fund management professionals Returns not predictable Various investment choices : bank deposits, government bonds, state enterprise bonds, corporate bonds (debentures), which provides a diversified investment portfolio Requires a smaller investment amount, however, this depends on the type of funds. Usually carries a management fee Taxation Tax on interest paid Tax on capital gain Tax on interest paid No tax on capital gain Home | Locate Us | Site Map | Help | Contact Us Personal Banking | Business Services | For Shareholders | About Bangkok Bank   Copyright © 2001 Bangkok Bank Public Company Limited.All rights reserved. Privacy Statement | Terms and Conditions