Equity Child Trust Fund

Why choose the Equity Child Trust Fund?

If you’re looking to try to make more of your child’s money over the years the Child Trust Fund will run, and you are willing to accept some risk, it’s worth taking a closer look at the Equity Stakeholder Child Trust Fund, provided by Legal & General. This invests your child’s money in company shares on the UK stock market, via the L&G (N) Tracker Trust, which aims to provide long-term capital growth by tracking the FTSE All-Share Index.

Key features

• 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
• Additional annual contributions of up to £3,600 can be made each year, either by setting up a regular standing order, by one-off cheque, or direct transfers from other Nationwide accounts. Additional contributions can be made from just £1.
• It's a stakeholder fund, so it has low charges
  
• 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**
• We'll send an annual statement shortly after your child's birthday plus regular statement on the fund’s performance and overviews of the markets in which it invests. The statement will show how much has been saved and how much interest your child has earned

Lifestyling Option

To provide an element of protection against sudden stock market falls, the Equity Stakeholder Child Trust Fund provides a Lifestyling Option. Legal & General will write to you shortly before your child’s 13th birthday giving you full details of the Lifestyling Option along with details on how to cancel this option if you wish. Further details of this can be found in the Key Features document.

Annual Management Charge

There is no initial charge, but there is an annual management charge of 1.5% of the value of the fund (full details of the charges can be found in the Simplified Prospectus).

Before choosing to invest

You should be aware that the trust is rated as medium risk - for details refer to the Key Features Document.

You should also be aware of the following risks before investing:

• Money can only be withdrawn by the child, when the child reaches age 18.
• The value of your investment may fall as well as rise as a result of market conditions and the effects of inflation, and your child may not get back the amount invested.
• If you transfer this investment to a different Cash or Equity Stakeholder Child Trust Fund the value of the transfer may be less than the monies invested.
• If you choose to switch into this Equity Stakeholder Child Trust Fund your investment may not perform as well as where you had it before.
• Where the Lifestyling Option has been selected the value of the funds may be less than if it had not been selected.
• Charges may not remain at their current levels.
• The current favourable tax treatment of the Equity Stakeholder Child Trust Fund may not be maintained in the future.