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Other Investment Options
The Child Trust Fund is not the only way in which you can save for your child’s future. There are various other savings and investment schemes available that provide both short-term/low-risk and long-term/high-risk returns.
The most attractive feature of short-term investments is that they are extremely low-risk and returns are virtually assured. They do not offer particularly exciting growth prospects but you can be assured of a steady rate of interest even if the economy takes a turn for the worse. Unlike stock market investments there is practically no chance of your finances taking a hit.
Short-term schemes include Child Savings Accounts and Cash ISAs.
Long-term investments involve greater risk. But with the increased risk comes the potential for earning higher rewards. These schemes work on the premise that you must be prepared to invest your money over a period of time so that fluctuations in the stock market are evened out in the long-term. Essentially, you must be prepared to take the losses during the bad times if you wish to reap the benefits during the good times.
Long-term investments include Unit Trusts and OEICs, Investment Trusts and Stocks & Shares ISAs.
Start making investments now to lead a debt free life in future. |
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