Share based Child Trust Fund

hardwicky

Can anyone suggest how I can invest a CTF in low cost tracker funds? I am looking for a provider with low dealing costs and other administration fees, and which also offers some low cost tracker funds and not just fat fee charging managed funds. Is there anything for a CTF like Sippdeal?

Thank you!

xylophone

http://www.selftrade.co.uk/get-started/choosing-an-account/ctf/
might be worth a look?

hardwicky

Thanks! I will take a look.

hardwicky

Unfortunately Selftrade are undertaking a review and not taking on new accounts at the moment.

Can anyone suggest another service?

Reaper

CTF choices have dwindled rapidly. If you are happy to invest in a single tracker then various companies still offer CTFs. For example F&C's stakeholder CTF is typical investing in the FTSE All Share Tracker.
http://www.fandc.com/uk/private-investors/savings-plans/savings-plans-range/child-trust-fund/
With Family Assurance you likewise invest in a single tracker but they offer a couple of choices. A worldwide tracker and an ethical one I believe.
http://www.familyinvestments.co.uk/child-trust-fund/faq/

I think all Stakeholder versions now charge 1.5%pa, non-stakeholder versions vary.

In April 2015 you will be able to transfer to a Junior ISA at which point you will have a lot more choice.

hardwicky

Thank you Reaper for the two suggestions, but Family Investments say they are no longer accepting new applications for a Child Trust Fund.

I looked at F & C Investments and they limit the choice to investing in one of 13 'investment trusts'. No simple low cost trackers. Their funds look like they are actively managed funds - which normally means high fees - although I have gone through their whole website and FAQs and cannot find a single reference to what fees and charges they will apply to a CTF or the fees applied to any of the 13 Trusts they promote! Even the documents for the Trusts have no mention of AMC or other fees. There is a worrying total lack of transparency on their website about any fees and charges.

Does anyone else know of any low cost service still accepting applications that offers a simple low cost tracker investments for a CTF?

Reaper

hardwicky wrote: »

I looked at F & C Investments and they limit the choice to investing in one of 13 'investment trusts'. No simple low cost trackers.

I think you can still do the FTSE tracker, you just need to select the "Stakeholder" version in which case you don't get to choose from the funds, it all goes in the FTSE All Share tracker. Charges are 1.5%pa which is capped by the government so will never be higher than that. This is explained in the "Key Features" document and also the transfer form both of which are accessible from the page I linked to.

Only if you select the non-stakeholder version which they call the "shares account" do you choose funds. Charges here are not capped by the government and you must pay the annual fund charges (varies with the fund picked) plus an extra £30pa they recently introduced which put a lot of people off.

By the sounds of it you want the Stakeholder version.

Reaper

hardwicky wrote: »

Family Investments say they are no longer accepting new applications for a Child Trust Fund.

You mean "transfers" don't you - not "new applications"? New CTFs as not available for anybody any more.

hardwicky

Thank you Reaper.