How does this work for Child Trust Fund?

[kmo0416]

I just found my Child Trust Fund and how much is in it as well as what it was invested in. However, I don't know how it functions exactly? Is it a case of if I were to not withdraw the money right now that potentially, it could lose value and go down if what it is invested in loses value so next week it could be less?

It can go up and down all the time. But the general trajectory will be up. They all dropped in value when lockdown began but have recovered it over time. You're advised to think of them as a long term investment. Martin Lewis has some guides to them on the Money Saving Expert site that might be helpful for you.

What is it invested in?
Read up about investing and start to manage it yourself.
Also depends on how much is in there generally there are ways to draw on it when it booms some people skim off the top or if it's a lot you can draw 4% from it without hurting the capital obviously depends on how it's doing and not in a huge dip etc.

But if I withdrew it all into my bank account, and I changed my mind, would there be anyway to invest again i.e. create a new account and put all the money back in?

ISA would be the adult equivalent

How much is it?

But, yes, you could reinvest your funds (elsewhere) if you wanted, having cashed it out.

The best thing to do is to move it out of the Child Trust Fund and re invest it. Once you get to 18 you can't add any more money to it so there's no point hanging on to it.

Some Child Trust Funds are cash (which will only go up) and some are stocks & shares (go up and down depending on the market).

People suggest building up 3-6 months living expenses in a cash ISA before you start investing in stocks and shares or fixed term bonds (which are less easy to get at when you need them and also more risky).

Choose the cash ISA with a provider you recognise with a high interest rate
https://www.moneysavingexpert.com/savings/best-cash-isa/#needtoknows

All explained by Money Saving expert. They look like they are recommending Leeds BS or Virgin Money. Personally I like Nationwide because they are owned by their account holders rather than shareholders. My kids got £50 bonus from the last thing.

While you are in the zone, set up a direct debit to add a small amount you can afford every month into the savings (assuming you have an income). 10% is a good point to aim for.

When you have your cushion, start looking at stocks and shares. Probably a tracker fund that goes up and down with the the FTSE100 to start with. Again, in an ISA so that you don't pay tax on your gains.

Only then would I be looking at individual stocks and shares where you could lose everything.

It's in a stocks and shares ISA and when I posted this thread a couple of hours ago it was at £1300 but now is at £1316. How could it have gone p by such in so quick?