Equity Child Trust Fund
The Equity Child Trust Fund we offer is provided by Legal & General and invested in the L&G (N) Tracker Trust and provides the potential for greater growth over the long term, through investing in the stock market.
The fund is structured as a unit trust. When you invest in a unit trust fund, your money, along with that of other investors, is pooled together and invested in the stock market by the fund managers. They oversee the management of the fund on your behalf, to ensure that the fund meets its objective.
It is important to note that any additional contributions made by you, family or friends into the CTF cannot be withdrawn until your child's 18th birthday and that only your child will have access to the money at that time.
Legal & General Equity Stakeholder Child Trust Fund objective
To produce long-term capital growth by tracking the FTSE All-Share Index.
- return is linked to the growth of the FTSE All-Share Index*
- it's tax-efficient – there's no personal tax to pay on the investment returns
- it's a stakeholder fund, so it has low charges and further contributions can be made from just £1
- it's easy to check the value of your child's investment on our fund price page or in the Independent newspaper
- it's flexible, so you can invest as and when it suits you, subject to annual allowances**
- regular statements on the fund's performance and overviews of the markets in which it invests will be provided
*The FTSE All-Share is an index of share prices of around 690 leading companies listed on the London Stock Exchange.
**The law relating to tax may change in the future.
Equity investments and past performance
If you're looking to make the most of your child's money over the years, and are willing to take a risk, it's worth taking a closer look at what the stock market could offer. This type of investment is available through Legal & General's Equity Stakeholder Child Trust Fund.
Stock market-based investments can often be unpredictable, particularly over the short term. Historically, day-to-day changes in value become less of a problem if you're prepared to invest for the long term, 5-10 years, and able to benefit from general trends.
The trust is rated as low risk – for details refer to the Key Features Document.
If you need advice, contact your local branch for an appointment with your Senior Financial Consultant