The Share Centre Stakeholder CTF meets the Government’s prescribed standards for Stakeholder accounts, and enables you to invest in the Legal & General UK Index Trust - an investment that buys equities across a range of different UK companies so that it tracks the performance of the FTSE All-Share Index.
One of the Government requirements for a Stakeholder CTF is that when your child reaches 13, the money in the account will be moved to lower risk investments to protect the value that’s already been built up. This is known as ‘lifestyling’. Obviously, this means your child’s money benefits less if the stock market is really performing well, but it also means it’s protected from any stock market losses as your child approaches his or her 18th birthday. This will automatically happen unless you choose for it not to, so we’ll contact you when the time comes, explain the options and act on your decision.
With a Stakeholder CTF, as with any investment based on stock market growth, past performance is no guarantee of future performance. Over a period of 18 years, however, stock market investment is generally held to be the most appropriate.
It’s important to remember, too, that a Stakeholder qualifying account is not in itself a guarantee of performance, and you’ll still want to satisfy yourself it is appropriate for your investment aims.
A Stakeholder account is the type the HM Revenue & Customs will open for your child if you do nothing with your £250 voucher.
