The One Family Child Trust Fund

beany202

Hi all, after a bit of advice please. I've invested into the CTF for 15 years 8 months. It is currently valued at £5117,  however, since this time last year it has lost £785 in addition to my £360 investment this year, so a drop of £1145.  I am torn with what to do. If my son was younger I would have no issues riding the current financial storm, however, with only 2 years and 4 months until his money matures I am stuck. The whole situation is bad enough and now worrying about my sons money to help him start his future. What would your advice be in this situation? should I move to a Junior ISA? Or keep money invested. I am worried it will drop even further and have very little time for markets to recover. We have no other savings to support his start up in life and are struggling ourselves, but continued with the CTF to given him an opportunity that we never had. Any advice or thoughts on the matter would be greatly appreciated. 

dunstonh

 I am worried it will drop even further and have very little time for markets to recover.

Have you obtained a recent valuation?    The growth over the last month is close to taking us into bull market territory (up by 20%).

Valuations bottomed out around 18th March but have been zig zagging upwards since then.   Typical investors (covering the most common risk ranges) are only looking at their values being where they were around 6-15 months ago.  

xylophone

If you choose to transfer, NS & I offer a JISA (3.25%) that accepts transfers in.
https://www.nsandi.com/junior-isa

stuart746

It is a difficult decision and I understand your thoughts about moving it. It really depends on what you hope your son will do with the money once he turns 18. I have three CTF accounts for each of my children and two of them will turn 18 within 2-3 years, but I have pressed on them the importance of continuing to save and invest so I think they will just transfer into a S&S ISA on maturity, giving it more of a chance to grow and recover any potential market downturns. If he is looking to use as cash then it is a calculated risk to leave in the CTF and not one that anyone here can advise you on unfortunately.

mark13

As we have seen a lot can change in a short period of time,  you are roughly down 20% at the last valuation which actually isn't too bad considering the circumstances.  As mentioned by Dunstonh its worth getting a new valuation, and based on my own circumstances would expect the losses to have been reversed , or at least on a good way to recovery. I have moved from CTF to JISA as there are a lot more options, currently have 8 years left.