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10 August 2006

"Back to School, Back to Saving"
Give your Children a Flying Start with Scottish Investment Trust

Flexible, low cost scheme for investing for children

With the cost of education continuing to rise and graduate debt expected to increase above 13,500 in 2006/7,* The Scottish investment Trust (SIT), one of the largest trusts within the global growth category, is giving people the opportunity to invest on behalf of a child through SIT Savings' STOCKPLAN: A Flying Start – its investment trust savings scheme for children.

STOCKPLAN: A Flying Start has one of the most competitive charging structures in the market with no initial or annual management plan charges (external expenses: government stamp duty of 0.5% and dealing spread which averaged approximately 0.7% over the last 3 years apply). This means money invested by parents, grandparents and family members goes further and is not eaten up by costs.

The plan gives parents flexibility by allowing them to start or stop their investment whenever they wish whether they invest monthly (minimum £25, there is no maximum), via lump sum (minimum £250, again there is no maximum) or through a combination of both options.

The diversity of SIT's investments means that risk is spread over numerous companies, sectors and countries, while allowing a global search for investment opportunity.  History suggests that over the long term the stockmarket has proved to be one of the best ways to create wealth.

You can now invest on behalf of a child through STOCKPLAN: A Flying Start in one of two ways: a designated plan or, more formally, as a bare trust.

Sherry-Ann Sweeting, Marketing Manager, SIT Savings Ltd, said, “Every parent wants to provide their child with the best possible financial start to adult life.  This can however be difficult and require planning, as many parents don't have the disposable income necessary.

"STOCKPLAN: A Flying Start allows parents to make small, regular monthly savings, which can be added to at any time. The low costs associated with the product ensure that money invested is not eaten away by the high management charges found with some types of collective investment."

Savers and investors can find out more about STOCKPLAN: A Flying Start by calling 0800 42 44 22, by visiting SIT's website - www.sit.co.uk - or by asking an IFA.

Past performance will not necessarily be repeated and is no guide for, or guarantee of, future returns.  The value of shares and the income from them can go down as well as up as a result of market and currency fluctuations and investors may not get back the amount originally invested.  SIT has a long term policy of borrowing money to invest in equities in the expectation that this will improve returns for stockholders.  However, if markets fall, these borrowings will magnify any losses.