baby bonds: childrens mutual

[geranium]

We still haven't placed our Child Trust Fund cheque but need to do so. Someone mentioned a company called the Childrens Mutual (?) who produce Baby Bonds and give a very good rate of return. Has anyone heard of them/used them/would recommend them?

Thanks

Do deal with your child trust fund cheque, apparently only roughly half of them have been used so far.

I am not a financial advisor but you need to decide on what level of risk you want.

1. A cash fund has no risk to the capital and will increase by a set amount each year. This is the lowest risk.
2. Stakeholder account - next level of risk
3. Stocks and shares account - highest risk as your capital is at risk if the value of shares go down.

Most people are putting cheque into the lowest risk. But over a period of 18 years the stock market has consistently been the best option. As although shares go up and down, they tend to give the best return.

Try a website likely motleyfool.co.uk - they will have more info and some links to companies providing child trust funds.

Do deal with your child trust fund cheque, apparently only roughly half of them have been used so far.

I am not a financial advisor but you need to decide on what level of risk you want.

1. A cash fund has no risk to the capital and will increase by a set amount each year. This is the lowest risk.
2. Stakeholder account - next level of risk
3. Stocks and shares account - highest risk as your capital is at risk if the value of shares go down.

Most people are putting cheque into the lowest risk. But over a period of 18 years the stock market has consistently been the best option. As although shares go up and down, they tend to give the best return.

Try a website likely motleyfool.co.uk - they will have more info and some links to companies providing child trust funds.

Thanks. that's really helpful. Cash seems too low risk for me but not sure between 2 & 3. I'll try that website.

we have a stakeholder account. medium risk... medium money back i guess! seems a relatively safe option..

we have ours with family investments