Trust Funds Pay Out As Popular Gift

23/10/2007

Parents and grandparents across the country are considering a trust fund for the children this Christmas. There are several trust fund options for relatives who want to invest in a gift for the kids that will last far beyond this year’s Christmas party season.

Financial advisors recommend opening a savings account this Christmas party and holiday season for each child in the family. In 2008, parents could lead a competition amongst their children with incentives to meet savings goals.

Sally Hamilton with Mail on Sunday writes: “A £100 investment in the average UK All Companies unit trust ten years ago would now be worth £176.50 net of charges, according to the Investment Management Association - enough to make a significant contribution towards this year's sought-after Nintendo Wii console, which costs about £300.”

Investment trusts are another option for a long-term gift this Christmas party and holiday season. According to The Building Societies Association investment trusts pay out more than unit trusts: “Even left in a typical savings account the cash would have grown to £158”.

Trust plans can be specifically child-branded. Several investment companies such as Aberdeen, Baillie Gifford and F&C Asset Management will help parents and other relatives with the paperwork for setting up a trust fund this Christmas party and holiday season.