Should we invest in our daughter's stakeholder CTF

money_minefield

Our 17 year old child has the standard Government Child Trust Fund. We have never paid into it, it's grown slightly vs was originally invested. It's a stakeholder CTF and I've read that these are low-risk to ensure no major stock market crashes in the run up to it maturing when your child turns 18. I'm uncertain about whether to pay any extra money into the fund this financial year.

eskbanker

Seems a bit late to be considering doing anything with it now - any low-risk investment with such protection will also entail low returns (hence the lack of growth you refer to), and for less than a year it's unlikely to be worth doing, so probably best to concentrate on discussing with her what she wants to do with it at 18…

dunstonh

. It's a stakeholder CTF and I've read that these are low-risk to ensure no major stock market crashes in the run up to it maturing when your child turns 18.

The problem with being too low risk is that it makes no money. And as you say, it only grew slightly. First, what was originally invested, where, if it had been in the stock market, it would have been many times more. It was a poor choice originally but it's too late now.