New research by financial advice website Moneyfacts has found that cash Child Trust Funds have proved to offer a greater return than stakeholder versions of the government investment scheme.
Cash Child Trust Funds have seen a total return of 24.2 per cent in the four years since its launch, with a steady growth of around five per cent each year, turning the £250 voucher into £310.
While the stakeholder Child Trust Fund option started off well with a 24.2 per cent return in its first year, the recession has seen its growth fall to a total loss of seven per cent, meaning the investment is now only worth £232.
Richard Eagling, editor of investment life and pensions at Moneyfacts, said: "Whilst no-one would advocate investing in a cash Child Trust Fund over the full 18 years, these figures demonstrate the important role it can play as a temporary safe haven during periods of market volatility."
Children's Mutual research into the aspirations of children aged five to six recently revealed that hopes for their career choices could require an investment such as a Child Trust Fund .
Cash Child Trust Funds offer better investment returns, says Moneyfacts
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Cash Child Trust Funds offer better investment returns, says Moneyfacts
Thu, 14 May 2009
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