University tuition fees and regular investing

University tuition fees have yet again hit the headlines, with the Government looking at ways in which universities charging over £6,000 per year might widen access for poorer students.

With this in mind, it's an appropriate time to look at saving for university costs.  Figures from the Association of Investment Companies (AIC) suggest that, for those able to do so, regular investing could go a long way towards covering university expenses.  A £50 per month investment in the average investment company over 18 years to 31 January 2011 would have grown to £23,496.  The Global Growth sector, which has traditionally proved popular when it comes to saving for children, was not far behind, with a £50 per month investment over 18 years growing to £22,903.  A £50 per month investment into the riskier Global Emerging Markets sector would have grown to £44,146 over 18 years.

Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC) said: "Students have never had it tougher, and at a time when austerity measures are starting to bite and inflation is becoming a concern, many parents will also be increasingly feeling the strain.

"But for those who are able to set aside a relatively modest sum, and who have a long time horizon, it's worth considering investing on a monthly basis into a pooled investment vehicle such as an investment company.   By investing in a wide range of companies on your behalf, investment companies can spread investment risk across a variety of different companies, sectors, and risk profiles.  Whilst investors in the stockmarket need to be prepared for some ups and downs along the way, historically over the longer-term, investors have been rewarded."