The present with a future

Some parents might like to consider a present that will last long after the festive season has come to an end.

Statistics from the Association of Investment Companies (AIC) show that if you'd invested on behalf of a baby a lump sum of £1,000 in the average investment company 21 years ago, you'd now be able to give them a birthday present of £4,850 on their 21st birthday, whilst £50 per month invested over the last 21 years has grown to £24,108.

The Association of Investment Companies (AIC) has published a list of member children's savings schemes and Child Trust Funds (CTFs), including minimum contributions and charges. For a saving for children factsheet and for details on investment company children's savings schemes, visit theaic.co.uk

Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC) said: "All parents want to make sure their children have a great Christmas with lots of toys, but for those who are able to take a long-term view, an investment company has the potential to make a real difference to your child's financial future.

"All investment companies can be used for investing for a child via a bare trust or designated account and there are a wide range of investment companies covering a variety of sectors, countries and risk profiles. However, there are a number of designated children's savings schemes and Child Trust Funds which are a convenient and cost effective way to invest on behalf of a child, with minimum regular savings starting at £25 per month or £50 lump sum."