The Association of Investment Companies (AIC) today welcomed the Government's announcement which allows the transfer of Child Trust Funds into Junior ISAs (JISAs) from April 2015.
Ian Sayers, Director General, Association of Investment Companies (AIC) said: "This long-awaited announcement is a boost for consumer choice and ends a two tier system for children's saving. Many Child Trust Fund investors have found themselves 'locked' into a product because there are few alternatives but now they will have the freedom to invest in a far wider range of vehicles.
"The creation of a single Junior ISA market is a great opportunity for the investment company industry. Investment companies can be an ideal way to save for children and are particularly popular for this purpose. Their closed ended structure and the ability to gear have contributed to investment companies' strong long-term performance. If you had invested the current annual Junior ISA limit of £3,720 in the average investment company eighteen years ago you would now have £15,763."
Making the most of your Junior ISA
If you had invested the current annual ISA limit of £3,720 into the average investment company every year for the last 18 years you would now have £170,766.
Manager sponsored investment company Junior ISAs
Alliance Trust Savings
FIL Investments International
J.P. Morgan Asset Management
Witan Investment Services
For information on investment companies and manager sponsored investment company Junior ISAs, including minimum entry levels and charges, see the AIC website.