With Christmas fast approaching, it's time to think about giving your children a gift that will last long into their future, and investment trusts may be the perfect present.
Putting money into a trust for your children is a way of investing in their future. An annual investment of £100 started 18 years ago could be worth as much as £4,700 today. Considering the uncertainty of the economic future, an amount of money this large could be a big help for those studying at university, looking to buy their first car, or hoping to secure a deposit on their first home.
There are different ways you can save into investment trusts for your children. You can pay into an online execution-only platform, or you can invest through investment houses’ own children’s savings schemes or junior ISAs. The minimum contribution usually starts at £25 per month or £50 in lump sums.
Going through an investment house often gives you lower fees, as they will rarely charge annual admin fees or monthly purchase costs. However, when investing through an investment house you are restricting yourself to that trust, or other trusts run by that house.
If you are planning to invest regularly over time, you may wish to use an online execution-only platform. These platforms give you the freedom to invest across all investment trusts in one place, as well as funds and shares. Fees will be higher though, so be sure to target an investment platform that offers cheap monthly investing.
Please get in touch if you would like to know more about investment options.