Investment Options
The Children's Mutual Baby Bond Choice offers a number of different investment options for Child Trust Fund vouchers and additional contributions. Below we have outlined three typical investments for people who want to accept different levels of investment risk.
Baby Bond Choice includes a facility called "investment lifestyling". This means that, from age 13, your child's investments are switched from investments linked to shares to less risky environments, such as Government bonds, fixed interest securities and cash deposits. This is to reduce the chance of your child's savings losing value as their 18th birthday approaches.
We have outlined three typical levels of risk:
- Lower risk - where you do not want the money invested in the stockmarket. This level of risk will invest entirely in fixed interest investments such as Government Gilts. This type of investment can be expected to give a marginally better return than cash, without significant long term risk.
- Medium risk - where you are prepared for a portion of the money to be invested in the stockmarket, but would prefer some diversification through investment in fixed interest investments and cash.
- Higher risk - where you are prepared for all of the money to be invested in the stockmarket, giving the chance of higher long term returns.
Whichever option you chose, you should remember that investment returns are not guaranteed and the value of investments can go down as well as up.
Three typical investment funds that meet the above criteria are as follows:
Lower Risk
The UBS Medium Term Fixed Interest Fund aims to limit the risk of overall loss to an investor by investing primarily in gilts, money market instruments and other debt securities.
Medium Risk
The Gartmore Cautious Managed Fund aims to provide income and long-term capital growth by investing in a portfolio of shares, bonds and cash.
Higher Risk
The INVESCO Perpetual World Growth Portfolio aims to achieve capital growth by investing in an actively managed selection of the 'best of best' INVESCO Perpetual funds.
Full details of all the available investment funds can be found in the Growing Up Bond Key Features Document or by clicking here. You can request an information pack by clicking here.
Further details of the Ethical Investment options can be viewed by clicking here.
