My DD's Children's Mutual CTF Yearly Statement Advice

JF77

Hi,

I am looking for some advice please.

The value of the above account on 3rd Oct 2007 was £1,601.81.

I have paid £655.00 into this account since this date and, according to the statement the current value (3rd Oct 2008) is £1,754.00.

So, an increase in value of £152.19!!!

My first thoughts are OMG! with a sense of panic and feeling slightly sick.

Thanks for reading.

baby_boomer

Click on this FTSE100 chart for the last month and you will see that you have almost certainly lost more money since 3 October

This is a stock market investment and so can fall as well as rise.

Good luck with your eventual decision.

I'd be tempted to leave it, but if this is too much worry for you, then you can always sell up and transfer into a Cash CTF. Beware that current interest rates will probably fall, but at least your DD's remaining capital, and any future savings on her behalf, would be safer.

Does your DD have cash savings as well - or is this CTF her only nest egg?

Here's the FTSE 2 Year graph

JF77

Hi,

Thanks for your speedy response. This is her only nest egg at the moment.

I guess my worry is if it continues like this for the next 10 years. I would be happy to leave if I felt the overall growth would be worth while but with the state of the economy at the moment I am not sure.

Thanks again.

Prudent

I have a similar account for my dd. I haven't checked, but I am guessing it has fallen in value since the annual statement last December. I have only paid in £25 a month since then. My hunch is to leave the money. Remember if you are making regular payments just now,you are buying shares when their value is low. This could be good if you are able to leave them for a while.

JF77

Hi,

Thanks Prudent.

So, if I leave it as it is the shares that are being purchased for a small amount are not worth much but, in 13 years time when she is due to turn 18 they should hopefully be worth more.

I read somewhere that there has only been 1 18 year period where shares have not performed as well as alternatives maybe it was on this site.

Anyway, I feel a bit calmer, just want the best for me wee one as everyone does.
Thanks again.