Hill Samuel Umbrella Bond Indx Exmpt Fnd

Advantages: Risk free lottery
Disadvantages: Return relies on having "average luck"

..."There are two times in a man's life when he should not speculate: when he can't afford it, and when he can" - Mark Twain. Premium Bonds are a curious affair; part investment and part gamble, they are an almost-lottery run through National Savings and Investments, and backed by the government itself. I had until recently paid scant attention to them, until a chance conversation with my mother revealed that I had in fact owned a set of Premium Bonds since my 1st birthday, when my parents decided that some money given as a gift by my grandparents would be better placed into the bonds than into the savings account that they had opened for me. Having suddenly discovered this new dimension to my investment portfolio, I headed off to find out more about them. The Premium Bond scheme was started back in 1956, it turned out, when... Read review

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Advantages: Something for everyone no matter how small
Disadvantages: Perhaps not exciting these days

...Premium Bonds have had a varied reputation. Born against considerable political opposition, they have now been around for fifty years. In some eyes they are considered ‘naff’ – something that used to be given to the kids for christening presents, but which are now ‘old hat’, boring, expensive. However they are one of the secret weapons of the successful entrepreneur. Premium Bonds are a government backed security and as such your initial investment is safe. The prizes are tax free. If you read the serious financial papers or talk to a personal investment advisor in these days of very low interest and inflation rates generally, many will suggest a holding of Premium Bonds as a hedge in an all-round balanced portfolio. Although the nominal interest rate may be low, it is still quite competitive compared with the average Building Society... Read review

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Advantages: You could win, without losing your stake
Disadvantages: The prizes could be few and far between

...“I think these are definitely the next big thing, Tel,” Arthur Daley said as he settled himself comfortably into his favourite chair at the Winchester, put down his London Philharmonic (that’s a G and T to the rest of you), drew on a large Havana, and produced a brochure from his jacket. “Premium Bands.” “Premium Bonds, Arfur,” Terry McCann corrected him, as he picked up his pint. “They’ve been around ages. Not as long as you ‘ave, though. An’ the name’s Bond – Premium Bond.” Arthur was obviously so engrossed in the financial advantages that he ignored (or missed) the aspersions on his age and the joke. “Whatever they’re called, they look rather nifty, don’t they? It says here – you could win a million smackers each... Read review

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