Karlos Fandango

I am looking to invest 1000 pounds each in some form of trust for my niece and nephew which will become available when they turn 18. At the moment they are 6 and 8. My dad has suggested some sort of managed investment thing but the cost of this seems a bit steep. What are the other alternatives???

Cheers

Karl

Jon1T

I'd stick it a high interest kids savings account - they don't get taxed and pay 4.5%.

Don't bother with managed funds - you're paying a quarterly management fee for some tosspot to p*ss your hard earned down the drain. If you're going that way just get a FTSE tracker fund (which will track the FTSE as it heads south, picks up, then heads further south)...

Then as soon as the markets pick (in a year?) transfer the money into a tracker ISA.

fast bloke

Tracker fund is probably the way forward - Jon - You been skipping your optimism classes again?

Managed funds are only really for large amounts of dosh where the 'expertise' of the managers can be fully offset against the increase in the fund value. They are probably not worth it for a grand

Tiggs

"Don't bother with managed funds - you're paying a quarterly management fee for some tosspot to p*ss your hard earned down the drain."

what is wrong with you lot????

managed funds have a charge....so does a loaf of bread, whats the problem? plenty of ppl made a LOT of money out of managed funds (plenty still do) and if you think that a savings account will outperform a UK managed fund over the next 10 years then you may as well leave the country now cause its gonna get grim if you are even close to being right.

CROYDON

What do you mean "whats wrong with you lot"??

Managed funds sound oh so nice and cosy don't there! well you obviously haven't checked your annual isa/pep statements then!

They may be fund managers but they don't have crystal *****!

If you want it to be more than you invested when they are 18 go for the high interest/tax free accounts or a lock in bond, they guarantee the interest yearly.

..IS

Boss Hogg

Tiggs - why bother with a managed fund? Most managed funds can't outperform straight trackers.Anyone can make money in a bull market - now the market's turned these guys have been caught with thier pants down. Or has everyone forgotten the tech funds that were launched to cash in on the e-business boom?

Also a managed fund has to growth by a least the maangement charge to break even.

At least you'll still have your money in a savings account - no-ones going to turn round to you in a year and say 'congrats - your £1000 is now worth £750'.

..then as Jon1T says, transfer to funds once the market picks up.

FERRARINUTTER

Preimum bonds, my 3 year old won 500 last month and 2 50's the month before that.........

Tiggs

"well you obviously haven't checked your annual isa/pep statements then!"

err, they are fine- i moved into corp bond managed funds and am making 7-8%, i lost a bit in the drop before then but no where near what i had made prior to that when my European/N.USA funds where doing 35%pa with a 1.25% amc.

T

sillysi

I would go with Premiumn Bonds, my 4 year old has won double what she has invested in the space of 2 years.

RESSE

iTrader: (1)

Phone 0845 971 5401 "One Stop Shop" for National Savings and Investments (backed by H M Treasury):

1. Premium Bonds.
2. Cash mini ISA.
3. Children's Bonus Bonds (Issue 5).
4. Index Linked Savings Certificates.

Richard

Trout...

Agree with Etheridge - a tracker is a complete waste of time - a high interest cash account is good for the short to medium term.

A good fund will outperform the market - but you really ain't got enough cash to make it worthwhile - they are for significantly larger sums where some will be spread into cash, bonds and equities - with a hedge fund for downside protection.

In fact hedges are why the Footsie is all over the place at the moment!

Trout

fast bloke

The shop doesn't charge you for a loaf of bread and then eat it on you


Big question - could Tiggs be a fund manager?

CROYDON

Tiggs...

"well you obviously haven't checked your annual isa/pep statements then!"

err, they are fine- I moved into corp bond managed funds and am making 7-8%, i lost a bit in the drop before then but no where near what i had made prior to that when my European/N.USA funds where doing 35%pa with a 1.25% amc.

well clever you! The question was about Managed funds I see you manage your own so you moved your dosh around and still get a good return. The Fund managers can't turn their massive portfolios around that quick and daren't go short which would have been so the right trade!

...........IS

father_jack

Just spend the money on yourself - they'll only spend it on drugs

father_jack

Alternatiely - you could lay down a few cases of port for them - might make a lot of money, might not........