Single savings contracts issued by insurance companies. They are collective investments that create a fund whose manager aims to secure growth. An increase or decrease in the value of the fund is reflected in the value of the investors’ units. The fund is treated differently in terms of taxation from unit trust funds as most taxation (income tax and capital gains) takes place within the fund. These single premium bonds are either: income/distribution bonds; with profits bonds; equity bonds (investing exclusively in company shares); managed bonds (spread risk by investing in shares, gilts and property).