Ethical Child Trust Fund - Important Information
At Foresters, we explain to you exactly WHAT a product is, precisely WHY the product may suit your requirements and in simple to understand language, HOW you can apply.
It is also important for you to be aware of the following factors:
- If you don't invest your Child Trust Fund voucher within 12 months, the Government will choose where to invest it on your behalf. So if you want to choose which Fund you invest with right from the start, you must decide now.
- You and your family can add to the Ethical Child Trust Fund - from just £5 per month up to £1,200 a year. The more you contribute, the more your child can look forward to.
- You can stop or start Direct Debits at any time you like.
- As with all stock market investments, please remember that past performance is not a guide to future performance. Also the value of investments can fall as well as rise and you may not get back the full amount originally invested.
- Bonuses will depend on the future investment performance of the ethical section of the With Profits Fund, as well as any deductions and how Foresters Friendly Society decide to distribute any profit.
- The addition of bonuses is not guaranteed and therefore it is possible that the Ethical Child Trust Fund might not receive any annual and/or final bonus.
- The rules and legislation covering the operation of Child Trust Funds may change which could affect the tax status of your child's Ethical Child Trust Fund.
- Your circumstances may change, forcing you to stop making contributions.
- Our deductions may turn out to be higher than expected.
- A Bank or Building Society account has greater certainty of growth than the Ethical Child Trust Fund. Also a Bank or Building Society account allows ready access to funds whereas the Ethical Child Trust Fund does not allow the child access to the funds until he or she is 18.
- The fund benefits can only be paid to the child.
- You should also be aware that inflation will reduce what the child can buy in the future with the fund.
- The Ethical Child Trust Fund is unsuitable as a short term investment. Only the child will have access to the money and not until they reach 18. It will be locked in until then.
- If you transfer your Child Trust Fund to another provider in adverse investment conditions the fund may be subject to a Market Value Reduction. If used this would reduce the value of the Child Trust Fund. However, the transfer value will not be less than the total of all contributions paid.
Make sure you read the Key Features Document.
Policy documents
You should keep your policy documents in a safe place - they contain important information about the Ethical Child Trust Fund. You will also receive an annual statement showing how the Fund is performing.
