Child Trust Fund

robin61

Hi Guys,

My daughter (age 11) was given some money by a relative. For now I have put it into her Child Trust Fund but as the fund now has nearly £8K in it I am reviewing whether this is the best place for it or not.

I'm not a particularly sophisticated investor so I'd be interested in some king of tracker fund.

At the moment the CTF is a stakeholder account with the Childrens Mutual. It is invested in a fund called the Aberdeen Foundation Growth Trust the Sedol code is B61LLQ6. Having looked at the Trustnet.com website if I've understood it correctly the fund has been performing lower than the FTSE Index.

It has an annual management fee of 1.5%

Is there a Child ISA I could transfer this CTF to which has had a better track record ?

Thanks

sl_jones

Hi there,

You can move your child's CTF into a Junior ISA either with the children's mutual or to another provider. Or even move the CTF to another CTF provider as there is not really a difference between the two.

What you have to think about is how much annual management charge you want to pay will effect 1) how safe the fund is, 2) how much that will effect the growth.

Someone like Hargreaves and Landsdown offer a lower annual charge depending on how financial savvy you are, however you could find that if you keep changing to different funds all the time with them then you'll rack up a bigger bill.

However if you stay in the one fund that performs well you will end up making more but possibly paying more of an annual management charge. Then you have to weight up your risk level, the fund your in is a tracker fund, if you were to transfer to a balanced fund you daughter's money would be alot safer and you'd be less likely to loose everything if the stock market crashed.

AJ bell are another good provider with a low annual management charge( depending on what you do).

xylophone

You might wish to consider transferring to the more flexible JISA?

https://forums.moneysavingexpert.com/discussion/comment/68487503#Comment_68487503

robin61

Thanks guys. I will have a look at your suggestions.