Email to a friend

Four in five CTF vouchers invested in equities

Just one in five parents has opened a cash-based Child Trust Fund (CTF) account for their child according to estimates from CTF provider, The Children's Mutual, writes Richard Eagling.

It has calculated that a maximum of 19.5 per cent of parents have chosen to put their child's CTF voucher into a deposit account since the scheme went live in April 2005. Commenting on the figures David White, Chief Executive of The Children's Mutual, said: "One of the great successes of the CTF to date is the number of children who now have a shares-based investment in their name. Following the HMRC allocation of the outstanding CTF vouchers, we now estimate that four in five accounts opened are based in equities."

Article continues below

He went on to say: "We urge any family making a choice for their child to consider seriously the implications of their CTF account choice. The latest Barclays Capital Equity Gilt Survey confirms that, historically, equities have outperformed cash over many many years and we are keen that parents understand this when making the investment decision."

The latest Child Trust Fund figures, released by HM Revenue & Customs (HMRC), have revealed that 75% of the first wave of parents to receive CTF vouchers invested them before they expired.