Investing For Grandchildren

Zebra

Which is the most cost-effective and tax-efficient way of investing regular sums on behalf of grandchildren (aged 10 and 5)?

I was considering a fund like HSBC FTSE All-Share Index.

Reaper

It's cheap if you are happy to invest only in a UK tracker.

Look at putting it into trust for the child so their tax allowances are used rather than yours.

Zebra

Reaper wrote: »

Look at putting it into trust for the child so their tax allowances are used rather than yours.

Thanks Reaper - that's the sort of thing I was thinking of.

Where would I get information on that and how to go about doing it?

Reaper

Check if the company you are taking the investment out with will arrange the trust for you as that makes it very simple. If not you will have to use a solictor.

Alternatively I know many "Investment Trust" (the word "trust" here has a different meaning!) companies will do it all for you if you are investing in their funds. They won't be offering trackers though and as such cost a bit more (though still pretty cheap).

In case you choose that option here are a couple of examples:
Baille Gifford (I used them)
F&C (respected and longest running of all investment companies)

Zebra

Reaper wrote: »

Alternatively I know many "Investment Trust" (the word "trust" here has a different meaning!) companies will do it all for you if you are investing in their funds. They won't be offering trackers though and as such cost a bit more (though still pretty cheap).

I think that might be the simplest way - I've used F&C myself in the past and was happy with them. I've not used BG, but they seem well respected.

Thanks.