Stakeholder Child Trust Funds Comparison

Stakeholder Child Trust Funds accounts are where the money is invested in the form of shares in companies. To reduce the risk of this type of investment the British Government has introduced certain rules that govern this type of account.

In order to spread the risk for this type of investment the shares are spread over many companies thus enableing the risk to be reduced.

When your child turns 13 the shares held by the Stakeholder Child Trust Fund provider are invested into lower risk investments and assets such as cash. The providers of the child trust fund will determine when and where the investments will be moved into lower risk investments. The idea is that although your child's CTF is not necessarily benefiting from a rise in the stock market they will benefit from reducing any potential losses towards the end of their Child Trust Fund thereby minismising the risk that themoney could be lost due to bad investments.

Once you have opened your Stakeholder Child Trust Funds each and every fund provider must accept the minimum £10 investment to start the fund though the provider can accept less than £10 if they so wish.

Yearly charges for a Stakeholder Child Trust Fund are capped at 1.5% per annum ie for every £100 invested the maximum that can be charged for administering the account is £1.50 - other types of child trust funds are not limited in this way.

The Stakeholder Child Trust Fund account is the default account that the government will use if the money is not invested before the expiry date of the CTF voucher.

See the comparison table above to Compare Stakeholder Child Trust Funds and get the most up to date information of the funds values and yeild returns.