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Financial advisory
RES5Financial Advisory Services✓What are the two main disadvantages of portfolio bonds identified in the study text?
The main disadvantages are the high charges (insurers must invest heavily in IT integration) and reliance on tax benefits that could change; the cost of owning the bond may outweigh its tax advantages.
Portfolio bonds offer wide investment choice and only a small death benefit, so options citing 'no choice' or 'a large death benefit' are wrong.
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