Non Stakeholder Equity Child Trust Funds

Free from specific government conditions, the Stakeholder Equity Child Trust Fund is able to offer more investment opportunities - ideal for the seasoned investor or those searching for increased performance. Once again you are solely responsible for selecting the most appropriate fund to suit your investment objectives and personal circumstances. Whether you're a believer in past performance, use investment reputation or gut feeling to help you decide, when choosing a Non Stakeholder Equity Child Trust Fund you will need to pay particular attention to the initial set-up fees, annual management charges and dealing fees. If you are in any doubt as to the suitability of a Child Trust Fund we recommend you talk to your financial advisor.

Despite there not being a cap on fees, annual management charges closely resemble those of the Stakeholder Child Trust Fund - typically ~ 1.50%. More common however are the initial setup charges, and they can vary quite considerably depending on the Child Trust Fund provider. Fees in excess of 5.00% are not unusual.

With Lifestyling* no longer a requirement, you will be responsible for ensuring the Non Stakeholder Equity Child Trust Fund has a safe landing in the few years preceeding your child's eighteenth birthday.

Capped at £1200 per annum, the maxmimum collective contributions by you, your family and friends remains unchanged. Providers are however free to set their own minimum amount and are no longer obliged to accept £10 as a minimum payment. Furthermore, Direct Debit, Direct Credit, Cheque and Standing Order payment methods may, or may not be permitted.

* Lifestyling aims to protect the value of the accumulated fund by moving it into a mix of cash deposits and government securities (Gilts).

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