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Investment fund for child

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  • 15-11-2019 10:16am
    #1
    Squall Leonhart
    Closed Accounts Posts: 1,794 ✭✭✭


    I've tried reading through other threads on this and came up none the wiser really.

    I'm looking at setting up an investment fund for my yet-to-be-born child, arriving early 2020. I don't need/want the account in her name, just a way to save money for her parents to have to help with college or whatever she decides to do as an adult.

    Only looking for something very small to tick away in the background. 100 a month for 17 years is 20 grand if I just stuck it in a bank or credit union, but the value of that money would be decreasing steadily. Would rather put it in an investment fund, make a few % growth on it. If I got 3% per annum my 20K becomes 26K.

    Any tips, ideas? Something passive, lowest fees possible obviously, just want to transfer my 100 a month and forget about it, possibly increase it in time.


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    #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,035 Mod ✭✭✭✭Jim2007


    Squall Leonhart wrote: »
    I've tried reading through other threads on this and came up none the wiser really.

    I'm looking at setting up an investment fund for my yet-to-be-born child, arriving early 2020. I don't need/want the account in her name, just a way to save money for her parents to have to help with college or whatever she decides to do as an adult.

    Only looking for something very small to tick away in the background. 100 a month for 17 years is 20 grand if I just stuck it in a bank or credit union, but the value of that money would be decreasing steadily. Would rather put it in an investment fund, make a few % growth on it. If I got 3% per annum my 20K becomes 26K.

    Any tips, ideas? Something passive, lowest fees possible obviously, just want to transfer my 100 a month and forget about it, possibly increase it in time.


    The figure is too small to make monthly investments as any gains will be eaten up by fees. Better to stick it in a savings account and make one purchase per year.

    Probably look at something like https://www.fundsmith.co.uk


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    #3
    JPup
    Registered Users Posts: 913 ✭✭✭JPup


    I think your best bet would be to set up an account with degiro or similar and put in 100 each month. Then invest it in a cheap global etf that accumulates dividends over time. That should get you 3% per annum after tax.

    If you go through a bank or broker at that size, the fees will swallow too much of the return.


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