The majority of investors are likely to take an aggressive stance, investing mainly or wholly in equities, when investing for a child over an 18-year timeframe, according to a new survey.
In the latest F&C Question of the Month, which canvasses the views of visitors to an investment trust website, there is a "total lack of support" for ultra-conservative, cash-only investments.
Conversely, respondents to this survey revealed that they are keeping faith with the idea of long-term investment in risk assets.
Mike Woodward, head of investment trusts at F&C Investments, commented: "The past decade has been a tough one in the equity markets, but with interest rates at an all-time low and the prospect of inflation picking up, investors are wary of the potential for value destruction in cash."
Meanwhile, Martin Clarke, executive director for financial risk at the Pension Protection Fund, has warned that longevity risk is a "significant challenge" which needs to be tackled, with effective risk management being essential.
Posted by James Harrison