Jan 17 2007
While government figures report awareness of the child trust fund (CTF) is high among the general public, efforts to increase this awareness should be targeted at lower-income groups, it has been claimed.
CTF provider Family Investments reported that it believed the 25 per cent of families who do not choose their own fund showed correlation with those on lower incomes.
Miles Bingham, a spokesperson for the company, said: "We need to be targeting parents who don't appear to be able to engage with the accounts and fall into the trap of automatic allocation."
He added that these funds would firstly lose out on a year of interest, while its own figures reports that such funds are less likely to be topped up by contributions from family and friends than other CTFs.
New Star Asset Management this week described CTFS as a "strong success story" that can give a child a strong financial start in life.
