What is a Baby Bond® Child Trust Fund account?
The Children’s Mutual Baby Bond® is a ‘Stakeholder’ Child Trust Fund account. There are other types of Child Trust Fund accounts on the market – Non-Stakeholder accounts, which can be either cash deposit or share based – but Stakeholder versions are the government’s preferred way of growing your child’s savings. With this Stakeholder account, the money is placed in a fund that invests in a mix of government and corporate bonds and in shares in UK and overseas companies. Baby Bond® includes the government’s safeguards for stakeholder accounts. This doesn’t mean it’s guaranteed or automatically suitable for every child, but it does mean: no high risk investments charges capped at 1.5% of the account’s value each year, and moving money to lower risk investments from the child’s 13th birthday. All of this is aimed at giving a better outcome for your child. The Children’s Mutual believe – like the government – that shares produce greater returns than cash deposit accounts over the longer te
The Children’s Mutual Baby Bond® is a Stakeholder CTF account – such accounts are the government’s preferred option. Baby Bond® includes the government’s safeguards for stakeholder accounts. This doesn’t mean it’s guaranteed or automatically suitable for every child, but it does mean: no high risk investments charges capped at 1.5% of the account’s value each year, and moving money to lower risk investments from the child’s 13th birthday. All of which are designed to provide a better outcome for your child. Why invest in shares? We believe – like the government – that shares produce greater returns than cash deposit accounts over the longer term. Although cash deposit accounts guarantee the security of the amount invested, the Barclays Capital Equity Gilt Study 2007 shows that shares have outperformed cash deposits for all but one 18 year period from 1899 to 2007. Of course, past performance is not a guide to what might happen in the future. But can’t the value of shares go down as wel
