Considering tax and performance when saving for children

When saving for children investors need to take into account tax, term and performance as well as ensuring the money is not subject to any market downturns at the time it is needed

One of the most natural instincts when a child is born is for the parents or grandparents to want to try and secure its financial future, either in terms of university funding or perhaps a deposit on a property. But very few people actually achieve their objectives on the scale that they initially imagined, and in my experience most attempts to save for a child or grandchild fall well short of initial expectations. There are three key issues when saving for children - term, tax and performance. Oddly enough, like children, none of these three factors will ever achieve their best if they do...