Investment Trusts > Child Trust Fund

Advantages: self select gives you maximum flexibility, free government money
Disadvantages: shares prices may go down as well as up, child gets money at 18

...are similar to a standard ComDirect trading account so are reasonable. The account is free from income tax and capital gains tax so is a very tax efficient way of saving long term. The online trading platform is easy to use being just the standard ComDirect offering. The portfolio is easy to view, and other people may donate in to the CTF on a special page at ComDirect by using the Unique Reference Number allocated to the child by the government ...
...people may donate without needing to log in to the CTF account itself. If more than £1200 is donated in any year then the excess is placed in a feeder account for the next year. The total assets may not be withdrawn until the child is 18 (except in exceptional circumstances). Depending on the amount of money deposited and portfolio performance this could range from nothing (assuming it was all lost!) to tens of thousands of pounds (or more!). Now ... Read review