PARENTS who invested Government child trust fund payments in shares-based accounts could have lost nearly £100 in recent stock market falls, said a report last night.
But cash-based funds have benefited from the high interest rates being paid at the time the scheme began and the best performing has gained £57 over three years, a survey by consumer magazine Which? said.
The report looked at the performance of child trust fund (CTF) accounts over the first three full years of the scheme’s operation.
It said: “The results make depressing reading, as this period ended with a major stock market downturn.
“The FTSE 100 stood at 5,780 on January 30, 2006, but had dropped to 3,626 by March 2, 2009 – £250 invested in a fund that tracks the FTSE 100 share index would have dropped in value to around £157 as a result.”
All children born on or after September 1, 2002, receive a £250 CTF voucher to be invested on their behalf, with some children receiving £500.
The Government makes a further contribution when children are seven.
