ARK Life has brought out a new lump sum investment product under the Special Investment Account (ISA) low DIRT tax rules. Called the Special Investment Bond, it has the added feature of no front end charges or bid/offer spread.

The only charge is an annual 1.75 per cent management fee, which AIB reserves the right to raise "subject to giving you 12 months notice".

Minimum lump sums of £50,000 are invested in the AIB Special Investment Fund (Series 2). Under the ISA regulations, a minimum 55 per cent of the fund must be invested in Irish equities with a balance in a mix of international stocks and shares.

There is no minimum investment period, but AIB are recommending at least a five year period and you can cash in your bond at any time with no penalty. There is no capital guarantee with this product and its value will rise and fall with the performance of its underlying stocks and shares.

The 10 per cent tax rate which applies to these products generally is a major attraction, as well as the fact that in some cases, the fund managers have put the balance of the fund (i.e., 45 per cent) into government gilts in order to provide a guaranteed return.

AIB have not gone into any detail about their overall investment strategy for this bond, other than having to place 55 per cent of the fund into a mixed portfolio of mainly high performing Irish stocks.

Low DIRT investments like SIAs and SSAs are a good addition to a larger portfolio of investments, mainly because of the significant tax discount.

But before committing money, potential customers should also seek independent advice about the investment performance position of the bond issuers, whether AIB or any of the other companies offering them.