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Child trust fund could spark off £1bn market

Most parents are considering topping up their children&#39s funds and savings, says Virgin Money

Its research findings come as the Government is set to give details of its child trust funds which were announced in the April Budget.

The nationwide study reveals that 53 per cent of parents save regularly for their children and that nine out of 10 will consider making contributions to a child trust fund. The average monthly amount that parents would be happy to contribute is £38.

Virgin Money estimates the creation of the new child trust funds could produce a new billion-pound investment market, with an extra £278m in parental contributions and an estimated £752m in Government expenditure in the first year alone.

The research also reveals that fathers and Londoners are the most interested in the possibility of investing the funds in equities, with 37 per cent of fathers and 47 per cent of Londoners considering the possibility.

Pollster TNS Global surveyed 620 parents about their attitudes towards the saving initiative on behalf of Virgin Money in July.

Virgin Money director Gordon Maw says: “We have been a supporter of child trust funds all along and are looking forward to them becoming a reality for millions of parents across the country.”

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