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7 July 2008
Give your child A Flying Start
Parents and grandparents looking for ways to finance their children and grandchildren through university can invest on behalf of a child in STOCKPLAN: A Flying Start. This is a flexible, low-cost investing for children scheme which could help provide children with an investment for the future. It is offered by SIT Savings Ltd, The Scottish Investment Trust PLC’s wholly-owned subsidiary.
STOCKPLAN: A Flying Start has one of the most competitive charging structures in the market with no initial or annual management plan charges other than stamp duty (0.5%) and dealing spread. This means money invested into the plan is not eaten up by charges.
The plan gives parents and grandparents 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.
History suggests that over the long term, the stockmarket has proved to be one of the best ways to create wealth. Research has shown that over any consecutive 18 year period there is a 99% probability that equities will outperform cash (source: Barclays Capital Equity Gilt Study 2008).
STOCKPLAN: A Flying Start provides access to the professionally managed portfolio of global equities of The Scottish Investment Trust (SIT). SIT has a diversified equity portfolio and invests in a broad range of international equities. Although there is always an element of risk involved in any stockmarket investment, SIT aims to lower this by spreading investment over numerous companies and sectors around the world, while actively searching for investment opportunities.
Sherry-Ann Sweeting, Marketing Manager, SIT Savings Ltd, said, “Every parent wants to provide their child with the best possible start to adult life and this may include the opportunity of going to university. As the average all-in cost of a three-year degree course is currently around £39,000 - £45,000 in London - (source: NUS February 2008), funding a university education can be difficult and requires financial planning, as many parents don’t have the disposable income necessary.
“STOCKPLAN: A Flying Start can be used by all parents wanting to invest for their children, with the potential to help reduce the financial burdens faced when children start out in adult life. The low costs associated with the product ensure that money invested is not eaten away by the high management charges found with some other types of investments.
“By choosing to invest on a regular monthly basis, you can help to ensure that your child starts their adult life with a useful lump sum, which can be used towards the costs of going to university, or even to fund a gap year.”
Key product features of SIT’s STOCKPLAN: A Flying Start are:
- No initial or annual management plan charges, other than stamp duty (0.5%) and dealing spread, which means the money invested goes further and is not eaten up by costs.
- Flexible payment options: Monthly payments (minimum £25) can be stopped and restarted at any time. Occasional one off lump sums can also be invested (minimum £250).
- A low withdrawal fee of just £10 + vat: There is no minimum withdrawal amount and withdrawals can be made at any time.
- Twice yearly statements
Investors can find out more about STOCKPLAN: A Flying Start by calling SIT’s brochure request line on 0800 42 44 22, by visiting SIT’s website www.sit.co.uk, or by asking an IFA.
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.
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