Warnings that CTF vouchers could be lost

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Warnings that CTF vouchers could be lost

Over £60 million worth of Child Trust Fund (CTF) vouchers could be "lost" by forgetful parents, a survey reveals.

Research by Business Research Development Consultants, 21 per cent of eligible parents who have yet to open an account for their child state that they "don't know" what they have done with the voucher and a further four per cent admit "I've lost it completely".

The survey carried out for Child Trust Fund providers found that the biggest chunk of those yet to invest (28 per cent) claim to have "left the voucher in a drawer".

"With estimates that around a million of these vouchers (the standard being £250) remain un-invested, suggests over £60 million of money could have disappeared into ether," said Jason Hollands, director, head of communications at F&C.

"If these vouchers aren't found and proactively invested in CTFs chosen by these parents within a year of issue, the money will be automatically invested on their behalf in stakeholder plans, the lion's share of which are index trackers."

The financial services expert added: "Whilst this is probably better news than the money ending up in cash based CTFs, such index funds are increasingly skewed to a handful of oil and banking shares. Parents should therefore start hunting for the vouchers and consider the wider choices available such as global investment funds."

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