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Dr Renter

Child Trust Funds

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Thought I'd start a thread on child trust funds. I have an 11-week old daughter and have the £250 pound check sat in front of me. Not sure at the moment what the best line of action is. Normally the shares tracker would be the best option, but I really dont want to have anything tracking the FTSE at the moment.

What have you done with your CTF????

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Thought I'd start a thread on child trust funds. I have an 11-week old daughter and have the £250 pound check sat in front of me. Not sure at the moment what the best line of action is. Normally the shares tracker would be the best option, but I really dont want to have anything tracking the FTSE at the moment.

What have you done with your CTF????

Congratulations on the birth of your daughter!.

When my daughter was born I took out an equities CTF (FTSE All Share), but hedged a little by splitting my voluntary monthly contributions between the CTF (75%) and some (25%)into a straight-forward cash savings account. With regards to equities you have to consider that the investment will be for 18 years. Yes, markets are down now, but over the 18 year term the potential for growth is good. Good funds will also offer 'lifestyling' i.e. gradually moving out of equities and into cash based investments a few years prior to maturity and thus (hopefully) reducing the risk of fund values falling near maturity.

BTW another (admittedly uncommon) way to save for a child is to take out a SIPP (pension investment) for them. OK they can't touch it for (currently) a min of 55 years but the extended period of time means that smaller investments in the earlier years have great growth potential and in later life they may not need to contribute quite so much themselves to retirement savings plans, thus freeing up more disposable income !

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Congratulations on the birth of your daughter!.

When my daughter was born I took out an equities CTF (FTSE All Share), but hedged a little by splitting my voluntary monthly contributions between the CTF (75%) and some (25%)into a straight-forward cash savings account. With regards to equities you have to consider that the investment will be for 18 years. Yes, markets are down now, but over the 18 year term the potential for growth is good. Good funds will also offer 'lifestyling' i.e. gradually moving out of equities and into cash based investments a few years prior to maturity and thus (hopefully) reducing the risk of fund values falling near maturity.

BTW another (admittedly uncommon) way to save for a child is to take out a SIPP (pension investment) for them. OK they can't touch it for (currently) a min of 55 years but the extended period of time means that smaller investments in the earlier years have great growth potential and in later life they may not need to contribute quite so much themselves to retirement savings plans, thus freeing up more disposable income !

Thanks for the reply. The equities is the obvious choice especially as there has been a big drop recently. I was hoping that there was a DOW or a NIKKEI option as I can see them doing much better in the long-term than then FTSE.

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