Is there one single best child investment plan? Are there only two or three best ones? What are the pros and cons of each child’s investment plans in the UK? Are there no short-cut cut methods for availing the services of a child investment company?
According to some financial consultants, the best child investment plans in the UK are those that are started before the child reaches the age of under 18 and must resident in the UK. The consultant cautions that one should not invest large amounts of money in the early years. Instead, the child should be saved for later stages of his/her life. He/she should start saving gradually with the help of a part-time job or other incomes that one earns. This will help in building a nest egg for the child in the future.
Apart from this, the child can also go for debt mutual funds and government bonds. However, he/she should know that most of these investment options are risky and not guaranteed returns. However, he/she can look for some safe options like bonds, fixed deposit, and savings account. In addition to this, the child should have some amount of knowledge about the corpus he/she is going to build. The knowledge about the corpus and the frequency of investment options can help in determining the ideal size of the corpus.
Looking at the current scenario, inflation has hit all sections of the United Kingdom economy. According to the latest estimates, inflation has reached 25%. With the rise in prices of commodities, air tickets, electricity, gas, etc., there is a general decline in the disposable income of every individual. Therefore, to overcome this situation, people consider investing in gold and silver. One of the best investment options in the UK is gold and silver jewelry.
If you have a child, it would be wise to invest in an individual savings account. These are high-return plans and one does not have to wait for a long duration to realize better returns. Moreover, in case of any decline in the value of bank deposits, one can easily liquidate his assets in exchange for new ones. Therefore, individual savings account (ISA) and bank deposits are considered to be the best investment options in the UK for the child’s plans.
Another option available for the child’s plans is to invest in a PPI (point of purchase) or a PPI (point of sale) accounts. According to the current financial market scenario, it is not easy to get hold of a good PPI plan. Most of the banks do not provide lucrative interest rates for the PPI accounts. But if you are willing to invest in a PPI plan, it would be better to opt for a PPI with a good interest rate.
Another child investment plans in the UK is to purchase a disposable corpus. A typical the UK household has around five members. Thus, there is a need for more than five corpus holders. The advantage of purchasing a disposable corpus is that one need not wait for a long duration to realize higher profits. Moreover, it is possible to convert the surplus corpus into cash by paying lower tax.
Last but not the least, another child plan option available in the UK is the premium life insurance plan. According to the latest statistical data, there was significant growth in the life insurance sector in the UK in the last two years. There are many life insurance companies in the UK offering low-premium policies. Therefore, one can purchase a long-term investment option like the savings plan and invest the savings in a high-return asset like a savings account.