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Transferring CTF (investment) to Junior Cash ISA
bigsize9foot
Posts: 19 Forumite
Hi there. Happy New Year to everyone. I am looking for some friendly advice.
After a shock last year when my sons CTF lost about £800, I contacted HSBC to find out more. He is 14 at the end of the month so has 4 years left. They told me that they don't invest any differently towards the 18th birthday so the level of risk remains the same. While the fund has performed really well overall, the last four years have been pretty static and last year- a loss (on that years pay ins, not the overall investment). The latest years statement shows it has recovered and we have made back the loss but based on the last 4 years- if the next 4 went the same- I'd be worried. Although I feel confident it will make an overall profit, there is no guarantee and now seems a good time to withdraw it when it has done well and recovered- cut our losses so to speak and not be greedy with any risk. I am happy with what it has made so far and yes it could continue to grow but it might not and then I'd kick myself if it lost value.
So we've decided to transfer it into a Junior Cash ISA. My question is this. The unit price appears to be calculated on a daily basis at 12 noon. If this fluctuates it can really change the different of the fund value. If I transfer it, I will have no control over when it goes (as the new provider transfers it over) so what it the unit price is particularly bad that day and it goes over on a loss??
Anyone got any experience of this? Is there any way to maximise your fund value?
Thanks in advance.
B
After a shock last year when my sons CTF lost about £800, I contacted HSBC to find out more. He is 14 at the end of the month so has 4 years left. They told me that they don't invest any differently towards the 18th birthday so the level of risk remains the same. While the fund has performed really well overall, the last four years have been pretty static and last year- a loss (on that years pay ins, not the overall investment). The latest years statement shows it has recovered and we have made back the loss but based on the last 4 years- if the next 4 went the same- I'd be worried. Although I feel confident it will make an overall profit, there is no guarantee and now seems a good time to withdraw it when it has done well and recovered- cut our losses so to speak and not be greedy with any risk. I am happy with what it has made so far and yes it could continue to grow but it might not and then I'd kick myself if it lost value.
So we've decided to transfer it into a Junior Cash ISA. My question is this. The unit price appears to be calculated on a daily basis at 12 noon. If this fluctuates it can really change the different of the fund value. If I transfer it, I will have no control over when it goes (as the new provider transfers it over) so what it the unit price is particularly bad that day and it goes over on a loss??
Anyone got any experience of this? Is there any way to maximise your fund value?
Thanks in advance.
B
0
Comments
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You seem to want to transfer to a cash JISA - it should be possible for you to tell HSBC to sell the units to cash so that you know how much is held in the CTF?
You can then contact the new provider and ask them to arrange the transfer - Coventry BS is still offering 3.6%.
https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html
And note https://www.choose.co.uk/guide/transfer-child-trust-fund-to-junior-isa.html
Transferring whatever's saved in the CTF straight into the JISA doesn't have any impact on that allowance: that means family members can deposit up to another £4,080 during the rest of the year.0 -
Brillant- that's so helpful and makes so much sense. Thanks very much!0
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HI again. Ive hit a problem. HSBC have emailed back to say that the CTF has to be requested by the new Junior ISA provider and then they have 30 days to action it. They can't set a date and have no way of knowing what the value will be on the day of the transfer!! This seems really unfair as transferring it seems to have an equal risk to leaving it where it is till age 18.
Can anyone help?0 -
Are you not able to request HSBC to sell and hold as cash?
You can then set the transfer in motion?0 -
Ill email them back and ask them but they seem to be saying no....0
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https://www.hsbc.co.uk/investments/products-and-services/child-trust-fund/
It seems that a change of fund is in the offing.0
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