A short YouTube explanation by Ndubuisi 'Andy' Egwim about stock and shares ISAs aimed at investors. The speaker defines how stock and shares ISAs are used to invest in stocks and bonds (gilts), contrasts the variable returns of shares with the fixed income nature of bonds, and gives an illustrative example of a gilt paying 4.38% over 30 years returning capital plus interest.
Number two is stock and shares isa, my best ISA by far, stock and shares ISA is for investing. If you want to invest in the stock market, if you want to buy bonds, if you want to buy gilt. Gilt is just bonds. UK bonds just means bonds and what bond size like bonds are a fixed asset. They are fixed income assets. So remember, if you buy shares, it can go up, it can come down, it can go up, it can come down and maybe, obviously stock market have been investing for 20 years now. Over a period of time, the trajectory is high if you are buying the right things, if you're buying maybe if you're buying a well diversified index fund or you're buying good companies. Bonds, on the other hand, it doesn't go up and down. It's fixed to buy UK government 38 fixed bonds. What you're going to get is if you say it's 4.38%, you're going to get 4.38% for the next 30 years. Let's say you bought 20,000 with the bonds, at the end of 30 years, they will give you back your 20,000. So you've gotten back your original money and you also got interest.
