Family Investments advises stakeholder CTFs

28 September 2007
Stakeholder child trust funds (CTFs) are a good place to invest despite recent reports that they were high-risk.

Miles Bingham of Family Investments said that the bad press had arisen because some building societies favoured cash CTFs.

He said that government figures proved that stakeholder accounts were "the best place" for this type of investment.

Currently each child receives a £250 voucher from the government that must be invested until they are 18 years old.

There are three types of account that the voucher can be invested with: savings, accounts that invest in shares, and stakeholder accounts, while some banks also offer an ethical version of the CTF.

Parents were still favouring the stakeholder option, Mr Bingham said.

"The government's own figures show that over 75 per cent of child trust funds are being set up in the stakeholder accounts," he claimed.

"So this is clearly the dominant version and that hasn't really changed since the account was launched."

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