CTF Investment Question

mrsdumplin

I still need to invest my daughters voucher.

I am saving for her seperately so I feel I can be a bit reckless and put this in a higher risk investment fund but I'm a bit of a newbie...

I did read on here someone recommended F&C Private Equity Trust /Pasific Assets or Graphite Enterprise Trust as the best higher risk.

Would these still be a way to go ? or can someone recommend something different.

Any help or pointers really apreciated
Thanks
MrsD

lr1277

Why are you asking about these particular funds?

If it is because you go to the vendor's website and can buy a CTF account there? Are you aware, brokers do CTF accounts? If you open one of these accounts you can buy and sell to your hearts content. Advantage: you have the full range of stocks and funds. Disadvantage: charges (though not sure how much as I have not investigated this for myself).

If you mentioned these funds because you think they will grow a lot in the next 14 - 16 years, I am not sure myself. Not saying they won't, I am just not an expert in this area.

And if you are thinking about investments and timescales, are you aware you can start a pension for your child? Investment term 60 - 70 years. I think annual contribution limits are £3600 instead of £1200 for the CTF. Also over that timescale you and your child can take any number of risks for the first 30 years.

If I was investing over 60 years, I might consider a global equity income fund.

HTH

mrsdumplin

Thanks,
I read a post on here that recommended those funds for a slightly higher risk/return rate. so I thought I'd start with those. the advise given is below
Quote:
All stakeholder and shares CTF have risk, and hence are expected to provide better returns than a cash CTF. Even a nice staid stakeholder tracking the FTSE All-Share has a much higher risk and expected return than cash.

The additional return on investments riskier than that is unlikely to get you into lottery-winner territory.

However, for informational purposes only, from the F&C stable, I would say that US or Global Smaller Companies or Pacific Assets Trust would be reasonable investments that almost certainly provide additional risk and may possibly plausibly potentially provide a better return.

F&C Private Equity Trust or Graphite Enterprise Trust might give you the wildest roller coaster ride. Don't blame me if you lose it all though!

I didnt know you could start a pension for them!....

I've opened a building society savings account for her everyday money, birthdays, christmas etc. got a good rate for 12 months and we are putting £10 a month in then in 12 months we'll see whats around when th eintro rate expires.

This is just to stick her CTF voucher in, we dont intend to add to this as she gets hold of it when she's 16 and if shes anything like me when I was 16 it'll be gone in a shot. I just fancied play a bit riskier than a cash CTF, if it all went pear shaped we'd stump up the equivilent as if it had been in a cash CTF...

I also plan to set up something for her for when she's 18/21/30 ish....to help with a house deposit, wedding, car or uni...she cant even eat toast and I'm thinking about UNI!..

Then see how we are for cash and then something longer term like a pension...

So my question is really, I need some advice wheres best to invest her CTF voucher in something a bit riskyer.

Thanks
MrsD