Share Novice - Investing for Child as a Gift

stringvest

Hoping somebody can give me a bit of investment advice...

I'd like to buy some shares as a gift for a baby in the family - starting small at £50 with a view to adding to it over time allowing them to build a portfolio. I'd like to have choice over the initial shares purchased but have no idea whether this is possible. Can I set this up in the child's name (with a trustee of course)?

I'd also like to do the same for my own son but with larger investment of around £1000.

Had a dig around online but find it pretty confusing to be honest! Any advice will be gratefully received!!

GardenSun

This are very troubling times. all the major countries - usa, britain, japan, europe - are nearly bankrupt. so shares are a much better idea than government bonds.

But when big countries go bankrupt like Greece this will mean years and maybe decades of depression. I would be some gold and silver coins. and maybe the shares of some very big gold and silver companies like barrick, hecla. they will gain much in value with the political desasters to come. otherwise big majors like coca-cola, mcdonalds, intel. they will remain over the years stable.

I know this is not the standard advice. your bank adviser will call that crazy. but his advice will lead like the ones of most of his colleagues to majors losses of money. government bonds are now the most dangerous place to be and people still consider them safe.

no matter what you do. consider at least on part of the ammount in gold or silver coins. in some years you will thank me for the advice.

atush

Personallly, although when I was young and got shares in this way from my grandparents, with dealing charges it will be too expensive.

the very best way would be to save for them into an investment trust savings plan. You set it up in your name with them being the designee. you save monthly (from 20-50 quid per month depending on the firm) into an investment trust of your choice. From a good general one that invests all over the world, to emerging markets, UK, NA, eurozone, whatever. There are even a few such as Witan that allow 25 quid per quarter investments if you can't initially commit to more the 100 quid a year. One I save into is invesco perpetual income and growth and they accept as little as 20/month and have other trusts from which to choose as well. But given this one is up over 24% in 1 yr, and 43% over 3 years you can do a lot worse. The buying charges for getting shares of a trust this way are a lot lower than you would pay to buy them thru a broker. Just pennies per month, really.

I would say buying them the odd coin is OK (my mother bought me a few) but really that can backfire if they are stolen/lost etc.

stringvest

thanks for your advice - will look into the gold/silver coins option but I seem to recall that there is speculation of the price of gold dropping?

Thanks too for the advice regarding investment trusts - definitely an option for my son but not sure it's a commitment I want to undertake for somebody elses child so will have to keep thinking...

atush

The problem with gold coins os finding them, buying them and their price. A gold sovereign would cost you 250 qui d or more for a pne off. 20 quid a month is cheaper lol. Not to mention should one go missing in the post, after you buy etc.

If you want to give an investment rather than money or a gift to a non relative child, you could consider premium bonds (min 100) or a NSI certificate.

kidmugsy

ns&i Index-Linked Savings Certificates.