You can also invest directly into individual shares of your choice, and into other types of investments, such as Gilts, Unit and Investment Trusts, OEICs (Open Ended Investment Companies) and ETFs (Exchange Traded Funds).
The Share Centre’s Preferred Funds
To make it easier for you to get started we’ve selected four Funds that we believe provide you with a good starting point for your child’s account.
By investing in these Funds you pool your money with that of other investors and invest across a range of companies. Funds are managed by professional Fund Managers dedicated to investing and administering your money.
To give your CTF the best start and to make your money go further, we’ve negotiated special terms on all these Funds. This saves you, on average, 4.75% of the initial fee and there’s no dealing commission when you buy these Funds, either. You can invest in just one Fund or spread your contributions across any number.
Remember, when investing in any of these Funds you should make sure they meet your personal investment aims. In choosing these four Preferred Funds we have looked for ones with strong track records, good management and good prospects, but our selection should not be seen as a personal recommendation.
This fund is a protected Unit Trust. It gives you exposure to stock market growth, but with 100% protection of your capital from the falls. The fund benefits when the market rises and every three months gains are locked in and protected. In other words, the fund goes up when the market goes up, but, on a quarterly basis, your capital doesn’t go down when the market goes down.
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This tracks the performance of the UK stock market as represented by the FTSE All-Share Index. It invests in a representative sample of equities from all walks of life in the UK’s economic sectors.
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This particular fund aims to provide long-term capital growth by investment in funds with a significant bias towards UK mid and small-cap companies, and in large-caps when the opportunity arises.
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Different markets in different countries have different prospects at different times. This fund enables you to share in the potential of global markets as its managers aim to pick the right markets at the right time.
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For more details about each of these funds see the Preferred funds section in the Research part of our main site.
Before investing in any of these Funds, please read the relevant Key Features Document, which sets out the Fund’s objectives, the risks and other key facts.
How do I invest?
Whether you choose the Stakeholder account or the more flexible Child Investment Account, we make it easy for your money to be invested.
Investing in our Preferred Funds:
With our Regular Investment Scheme you can invest from just £10.00 every month. We’ll collect your monthly contribution by Direct Debit on the 16th of each month (or the next working day) and invest into your chosen Fund on the 23rd (or next working day). You can print a Regular Investment Service application form via our main site, or call us and we will send you one.
Ad hoc contributions can also be made to your account, from just £10.00 at any time. We’ll automatically ‘sweep-up’ available cash in your account on the 16th of each month (or the next working day) and invest it into your chosen Fund.
Make your initial choice on your Application form and then change your selection whenever you need, perhaps to spread your investments as your Fund grows or to invest directly in particular shares.
Remember, with the Stakeholder account, investment will be into the Legal & General UK Index Trust only.
Shares and other investments:
With the Child Investment Account you’ve a wide range of options available to you in addition to our Preferred Funds, so if you want to be your own investment manager and pick your own shares, then you’ve access to:
- All UK shares (excluding PLUS and AIM quoted shares);
- Eligible Unit Trusts, OEICs, ETFs and Investment Trusts;
- Eurotop300 and US shares (where they are traded in sterling and settled through CREST) (Please note: US source income may be subject to Withholding Tax);
- UK Gilts and a selection of UK Corporate Bonds (available to UK residents only).
Choose to retain contributions to your account as cash, and you can make your investment decisions whenever you want and carry them out when you think the time is right. You can make your investment by phone or through your secure online account access. You can also get free help and advice on investing in UK shares from the AdviceLine. Our team of friendly professionals is on hand to help you make your investment decisions from 08:30 to 18:00, Monday to Friday. Calls to the AdviceLine are charged at your normal call rate.
You’ll also find helpful information and our latest share tips at our main website. Click here.
