Tuesday 16th January 2007
Sainsburys Bank has conducted research which aims to discover the expected return for parents investing in child trust funds.
Child trust funds from Sainsburys Bank are provided through Family Investments and achieved a return of 8.92 per cent over the past year, it claimed.
This compares with an average return for cash-based child trust funds of 5.45 per cent, or 5.63 per cent during introductory bonus periods.
Peter Wood, head of savings at Sainsburys Bank, said: "In choosing a child trust fund, parents need to remember that they are saving for the long term."
"Whilst carefully considering the investment risk, they should note that over the long term equities have consistently outperformed cash," he added.
Sainsburys Bank is encouraging parents to consider stakeholder child trust funds in the light of continued stock market performance.
Since their launch in April 2005, child trust funds from Sainsburys Bank have achieved a total of 23.35 per cent growth, according to figures published in the report.
The news comes at the start of child trust funds week, a government initiative to raise awareness of the entitlement to initial deposits for the accounts.
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