Parents wondering what to get their kids for Christmas should consider making an investment on their behalf, according to one expert.
Annabel Brodie-Smith, communications director at the Association of Investment Companies, explained that £1,000 placed in the average investment company 21 years ago would now have grown to a lump sum of £4,850.
Those who chose to invest £50 a month over the same period would now be sitting on a nest egg of £24,108, she stated.
"All investment companies can be used for investing for a child via a bare trust or designated account and there are a wide range of investment companies covering a variety of sectors," she said.
However, those considering investing on behalf of their kids might want to consider a child trust fund, she added.
Yesterday, Barbra-Ann King, head of proposition at Barclays Stockbrokers, claimed that falling interest rates could encourage people to invest in equities in order to try and secure a better return.
Parents urged to invest for kids' futures
Parents urged to invest for kids' futures
Wed, 03 Dec 2008
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