Our CTF has gone down in value this year - anyone else, or have I just chosen badly?

[Bramshott]

Says it all really - was a little surprised to recieve DD1's annual CTF statement (which is Children's Mutual Ethical Fund through the Co-op) and find that the fund has lost money this year, but with no note enclosed to say why, even in general terms. Is this widespread, or should we be looking for a new fund?!?

I am NO expert and don't know if it's widespread or not, but as I understand it CTF's are a long-term investment and I'd see annual fluctuations as just that, fluctuations - unless you think there is a problem with their investment strategy overall. Over 18 years you're looking for a good return but over a single year I don't know if you can judge ...

A lot of investments have gone down this year so wouldnt think moving would be any better at the moment.

I have no idea how DS's is doing or who its with as the government invested it. I dont add to it as prefer the savings account I set up for him.

DS2's has gone up this year - DH and I were quite surprised by the figure when we got it in the post recently (don't ask me what the figures were - but it was certainly "up" on last year).

CTFs are a long term investment, but personally I don't like them. When we got our mortgage, the financial advisor told us not to pay any extra money into the CTF account other than the vouchers the government gives. I don't know if I am right in thinking this, but I don't think you can withdraw cash from a CTF, the deal is just that the child receives it at 18. Although that doesn't mean you can't change provider, as far as I know.

He said the best place for any money belonging to your LO like birthday money etc is to be offset against your own mortgage. You can give your LO the interest you saved, which will be at a better rate than savings accounts offer. Also you have total control over it, which is important to me!