CTF discussion area

ReportInvestor

I prefer the Cash CTF route, with stock market investments elsewere in order to take advantage of cheaper deals and pound cost averaging.

Investors' Association - Cash or Shares for your Child Trust Fund?

There is also the issue of stock market performance in the Summer to consider - although the weaker pattern has not been quite so marked since 1990.

Today's Telegraph can't make up its mind. Should parents invest without delay to avoid the recriminations of their children when they grow up? Or should they take heed of the stockmarket's "Sell in May" saying?

Jeet_2

I've been considering stakeholder funds and have narrowd it down to F&C's tracker CTF fund or HSBC growth & income. Both seem to track the ftse all share index, and F&c's only has a charge of about 0.7% compared with 1.5% on hSBC however the HSBC does seem to track and perform better on the upside.

I'm going to wait 'till mid summer when the market's reach a low point to gain the most benefit.

Ickle_Steve

I chose the Abbey stakeholder as it invests in an international tracker fund. I thought the international element might spice it up a bit while still being relatively safe.
I'm only putting in the CTF voucher though as I'm already investing for the kids elsewhere.

Superfast_Gran

Just a note for those interested in Ipswich BS CTF - apparently it is one of their accounts that they offer to ALL UK postcodes - info taken from their website just a few minutes ago!

davidjwest

Jeetmistry wrote:

I've been considering stakeholder funds and have narrowd it down to F&C's tracker CTF fund or HSBC growth & income. Both seem to track the ftse all share index, and F&c's only has a charge of about 0.7% compared with 1.5% on hSBC however the HSBC does seem to track and perform better on the upside.

I'm going to wait 'till mid summer when the market's reach a low point to gain the most benefit.

Why wait, you're missing out on potential growth. What I'd do (not being an IFA etc) is to open a savings type CTF where you get 6% for example, and transfer it to a shares CTF when you feel the time is right, there's no charge for transferring. OK so 6% for a few months isn't much but better than a kick in the chops.

Also double check the F&C charges, the 0.7% they quote is just for the CTF, which doesn't inlcude the usual fees associated with trackers, annual management charge etc, it's capped at 1.5% as all stakeholders are and I bet you'll find out the total charges work out darn near to 1.5%. As usual though, the figures given are clear as mud, which is the case with many providers.

isasmurf

The Government have now included a calculator on their CTF website.
http://www.childtrustfund.gov.uk/ChildTrustFundCalculator/fs/en

For Stakeholder and Equity CTF's it's the usual growth assumptions, but I'm baffled by the Savings assumptions. They use 4.5% and take 1% off for charges For a start 4.5% seems a bit low, but why deduct charges? Does any bank/BS charge for a savings account?

davidjwest

isasmurf wrote:

The Government have now included a calculator on their CTF website.
http://www.childtrustfund.gov.uk/ChildTrustFundCalculator/fs/en

For Stakeholder and Equity CTF's it's the usual growth assumptions, but I'm baffled by the Savings assumptions. They use 4.5% and take 1% off for charges For a start 4.5% seems a bit low, but why deduct charges? Does any bank/BS charge for a savings account?

The calculator has been on the site for a few months, when I tried it I don't get any charges knocked off for the savings account but only get a 3.5% rate of interest.

Whether or not this is low is a matter of opinion, but they are probably erring on the side of caution.

If you want another calculator, there is one on my site which I made myself, which lets you enter much more detail such as interest rate, charges etc. However, I can't guarantee it to be 100% accurate and of course the figures are for illustration purposes only as nobody knows what interest rates will be etc etc.

Your home is at risk if you set fire to your duvet

isasmurf

davidjwest wrote:

The calculator has been on the site for a few months, when I tried it I don't get any charges knocked off for the savings account but only get a 3.5% rate of interest.

Oh, has it. I must book that appointment at the opticians!

Yes, if you look at the page with the assumptions on it, it says it assumes a return of 3.5%, then on the next line it assumes an interest rate of 4.5% with 1% deducted for charges.

davidjwest

As far as I know, no savings type accounts make charges, but I believe in theory they could if they wanted to.

I wouldn't open a savings account that charged though and I doubt anyone else would, if the charges weren't hidden!

JBsplit

iam totally confused......where is best to put my sons £250 hand out from the government. ive had sooooo many offers and things in the post im now stuck with where to invest it, i dont want a yearly fee and i need to be able to top it up monthly...please help before my waiting time expires.