Investing for kids

Investing for your children’s future is a commendable decision, especially when they are very young, as it allows more time for your investments to grow. Given your preference for a «set and forget» approach and a focus on safety, there are several investment options you might consider:

1. Index Funds or Exchange-Traded Funds (ETFs): These funds invest in a broad market index, like the S&P/ASX 200, which can provide diversified exposure to the stock market. Since these funds are designed to mirror the performance of an index, they require minimal management on your part. Over the long term, they tend to offer good returns, although they do involve some level of market risk.

2. Managed Funds: Managed funds pool money from many investors to purchase a wide array of securities. Choosing a fund with a conservative or balanced strategy might suit your need to minimize risk while still potentially providing better returns than a savings account.

3. Bonds or Fixed Income Funds: Investing in government or high-quality corporate bonds can be a safer alternative to stocks. Bonds provide regular interest payments, and their principal value is repaid at maturity, which can align well with your goal of capital preservation. Fixed income funds that invest in a diversified portfolio of bonds can also be a good option.

4. High-Interest Savings Accounts: While currently, the returns on these might be lower, they offer high liquidity and capital safety. This could be a portion of your investment strategy, ensuring some funds are readily available and risk-free.

5. Education Savings Plans: Some specific investment products are designed to save for educational expenses. These might come with tax advantages or other benefits, depending on the product and your location.

When investing in your name for the benefit of your children, it’s also important to co

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