For immediate release: 1 June 2005

FIGURES REVEAL ALMOST 1.25 MILLION CHILD TRUST FUND VOUCHERS STILL NOT USED

IMA offers FREE Guide To Investing In A Child Trust Fund

What to do with the Child Trust Fund voucher is a question facing millions of parents now and in years to come.  Figures from HM Revenue and Customs indicate that less than 30% of eligible parents have opened accounts with their child trust fund vouchers. This delay is only denying their children the best possible returns when they come to cash in their fund.

The Investment Management Association has produced a FREE guide to investing in a Child Trust Fund, explaining the options available and in particular, the risks and rewards involved in investing in shares and/or bonds, using the experience of the Random family as an example.

Topics covered include:

• The three options – savings accounts, accounts that invest in shares, bonds or a mix of the two and stakeholder accounts
• What are the differences between cash, bonds and shares?
• Cash, bonds, shares or a combination – which is best for my child’s CTF?
• Making the most of the CTF through investment funds
• FAQs

Mona Patel, Head of Communications at the IMA, commented:

“Our Guide to investing in a Child Trust Fund is designed to help parents make an informed choice about what to do with their voucher and to ensure that they maximise the potential returns for their child.

“It is important to remember that the Child Trust Fund is a long-term investment and investing in shares offers the opportunity to earn higher returns than the other options.  And what better way to do this than through an investment fund?  
 
“ Hopefully the Child Trust Fund will also help to foster a savings and investment culture among future generations.”

Copies of the Guide and other free publications from the IMA are available both online at www.investmentuk.org/investors or in hard copy format by calling the Investment FactLine on 020 7269 4639.

-Ends-

A copy of the fact sheet can be found here.

For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332