InvestmentsDec 2 2015

Give your child a cash investment this Xmas – AIC

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Give your child a cash investment this Xmas – AIC

A £100 investment into the average investment trust grew to £428 over the 18 years to 31 October 2015, according to the AIC.

Meanwhile, a £100 lump sum invested annually each year, for 18 years, grew to £4,724.

The figures were released by the AIC to highlight the benefit of putting money aside for a child this Christmas rather than buying another present.

Annabel Brodie-Smith, communications director at the AIC, said: “We all want our children to enjoy Christmas with lots of toys, but any parent knows that some presents are opened and quickly forgotten.

“Parents might like to contribute towards a gift that can last long into the future, and an investment trust can be a useful way to access the long-term potential of the stock market.”

Investment companies are available through online platforms and there are also manager-sponsored children’s savings schemes and Junior Isas,

Any investment trust savings scheme can be designated to a child.

Adviser view

William Hunter, of Edinburgh-based Hunter Wealth Management, said: “Investing for children is a great thing to do and Christmas is a great time for it to happen.

“We do have some people doing it, but it tends to be lump sums.”