Stake Holder Child Trust Funds is a fund that where the investment is invested in the shares in companies. To reduce the risk factors in investing in shares the trust is spread around many shares to avoid having the trust be attached to just one share investment. When the child becomes 13 years of age the money in the account is moved to lower risk investments such as cash.

When the child trust fund is opened the providers have to accept a deposit of at least £10 but the CTF provider can accept less if they choose to do so.

Each stakeholder CTF has a charge asssociated with it and the charge can be no more than 1.5% per annum. For example for every £100 in the account a charge can be levied of £1.5 - this is a special case for Stakeholder Child Trust Funds. Other Child Trust Funds do not adhere to this.

If you don’t personally open a Child Trust Fund then HMRC will automatically open a stakeholder CTF account on your behalf.