Child's Investment Trust

99andie

My son is almost 4 and has just been given £2,000, I would like to invest this for him until he is of age. I was thinking of a Child's Investment Trust, anyone know of any good ones out there?

xylophone

Make sure that you keep a note of the source of the funds for tax purposes.

As the money has been given to your child and belongs to him absolutely you will invest in bare trust (not merely designated - see link for difference and example)

http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

Your child will have the right to access and control at the age of 18.

http://www.theaic.co.uk/Documents/Factsheets/AICChildrensFactsheet.pdf might be worth a look.
http://www.invescoperpetual.co.uk/site/ip/pdf/brch-child-fnd.pdf

http://www.thisismoney.co.uk/money/investing/article-2065240/The-best-investment-trusts-long-term-investors.html might be worth a read.

99andie

This is great, the Scottish Trust looks like something of interest, however I see this is a Shares Trust with an element of risk. Is there anything out there that will guarantee the return of the £2,000 I put in?

atush

If you want a guarantee, stick with cash. And watch it lose ground to inflation every year til your 2000 cannot buy what 100 does today.

There is no guarantee with equities, but they will, over 14 yrs til your child is 18, beat cash deposits as once they fall they will rise again.

BLB53

Aberdeen have a good range -maybe split between Murray International and Dunedin Smaller Companies.

Check them all here http://www.theaic.co.uk/aic/find-investment-company/management-group-and-wrapper-schemes

99andie

Thanks for this, will definately go down the route of equities.