According to Foreign and Colonial, a wide gap has emerged between parents investing their child trust funds in equities and cash accounts. Sixty seven per cent of investors who have placed their child trust fund vouchers with the company have invested more than the original value, but there were still a number of people who are unsure of what to do with their money.
The report has found that there are an estimated 1.25 million vouchers still to be invested, and the majority of those who have opened plans have put money into a cash account. Twenty six per cent of people have so far invested in the companies’ stakeholder option, with the remainder choosing one of the other six investment choices on offer.
Our view
As ever, CTF are just another Government savings flop. The informed will invest and invest a little more for children but only as a tax break. The uniformed will probably even forget about the voucher. Education is what is needed, not vouchers or tax deals.