Aug 2 2007
The advantages of investing in child trust finds (CTFs) will eventually become apparent to a greater proportion of UK consumers, one expert has suggested.
CTFs with tax incentives have only been around for a few years and so far uptake has been relatively slow, but there is reason to believe that this situation will change, according to Colin Rothery, regional manager of financial advisory business Throgmorton.
In particular Mr Rotherty insists that the benefits of investing in equity-based CTFs accounts should be made clear to consumers, who should then be able to give their children a more stable financial start to their adult life.
"As with most things - realisation and improvement comes with time and I'm sure the penny will drop that to save in cash over a five year plus term is folly as inflation will always be a threat," he said.
"I hope that in the longer term the advantages of equity investing for children become more apparent."
A survey carried out recently by the Tax Incentivised Savings Association found that the amounts being contributed to CTFs in the UK is rising on a quarterly basis.
