the stakeholder child trust fund account from Engage Mutual

Our child trust fund is a stock market based stakeholder account, which means it meets certain requirements set for stakeholder accounts by the government.

Non-stakeholder child trust funds are also available, but they do not have to meet the requirements set for stakeholder accounts. Before you invest your child trust fund voucher, it might help to think about your approach to the risks and returns of investing in shares so you can decide which type of child trust fund account you prefer for your child.

stakeholder child trust fund accounts

Stakeholder child trust funds invest your money in company shares. To make sure your money is exposed to less risk, it isn’t invested in just one company. By investing in a number of different companies, the risk is spread and therefore reduced. The government implemented this rule to ensure the money invested in a child trust fund is as safe as it can be when invested in shares.

government requirements for stakeholder accounts

lifestyling explained

When you save with our child trust fund, the money in your child's account is invested using 'lifstyling', the money is gradually moved from a medium to high risk fund to a medium to low risk fund.  A lifestyled approach is taken unless you tell us otherwise.

If the account is lifestyled, the payments will be invested and the fund switched as idicated in the table below: 

For example: If you invested £1000 when your child is 14, £400 will be invested in the medium/low risk fund and £600 in the Engage Mutual Investment Growth Fund.