Want to invest £10k over 18yrs

dave111

Looking to invest £10k for my new born kid.
Happy to keep invested for 18-20 years. To help pay for kids university/house/wedding etc.

What would you suggest is a good way to do this.
Cheers.

mrposhman

I would invest in funds that will hopefully take advantage of the low share prices, not just in the UK but worldwide. Don't put it all in one fund either, spread it around so that you spread the risk.

I'm not an IFA so i wouldn't know what funds to invest in, but as shares are low I would expect the long term return on them to pretty good.

thrupence

dave111 wrote: »

Looking to invest £10k for my new born kid.
Happy to keep invested for 18-20 years. To help pay for kids university/house/wedding etc.

What would you suggest is a good way to do this.
Cheers.

This is a good place to start:

http://www.childtrustfund.gov.uk/

Mightn't be a bad idea to think about investment trusts for the long term, since their annual charges are quite low and many of them are trading at massive discounts at the moment. They also don't suffer so much from the redemption dilemma.

I'd be looking at emerging markets, commodities and infrastructure, for example, given your timescale. Maybe think about dripping in over the next few years rather than lumping in now.

It's also a good idea to think in terms of developing a growth pot for now, switching to income during the university and young married years and converting back to long term growth for later years.

Good luck with it.