London, 15 August 2012: As the nation’s 18 year olds receive their A-level results tomorrow, many will be looking forward to going to University. They will be less enthusiastic about the resulting £50,000 debt they are likely to face when they graduate in three years time. While it may be too late to reduce this burden for those about to start further education, Fidelity Worldwide Investment believes now is a good time for parents of younger children to think about how they can start to prepare.
Tom Stevenson, Investment Director, Fidelity Worldwide Investment, comments: “The Junior ISA is a great way of spreading the cost of university across the first 18 years of your child’s life. It will be a lot easier to fund a university place for your child if you start early rather than trying to come up with a lump sum later down the line.
“Fidelity calculates that an investment of £175 a month could provide the estimated £50,000 to cover the cost of university for your child (with a few hundred pounds left over so they can buy you a thank you treat when they leave home!)*.
“Even if you only put aside £50 a month, the magic of compounding means that after 18 years you could have built up a fund of nearly £15,000 which would make a decent contribution to the cost of further education*.”
– ENDS –
Notes to Editors
* Source: Fidelity August 2012 based on a rate of return of 5% a year, a 1% initial charge and 1.5% annual management charge.
Any opinions expressed are made at the time of writing and can be subject to change without notification.
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Fidelity Worldwide Investment
Fidelity Worldwide Investment
Press Office Address: Fidelity Worldwide Investment, 25 Cannon Street, London, EC4M 5TA
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Fidelity Worldwide Investment is one of the UK’s largest investment fund managers with over 660,000 customers in the UK. We look after assets worth $212.0 billion1 and are dedicated to achieving the best possible returns for our investors
Fidelity provides UK investors with tax-efficient savings vehicles; such as ISAs, Junior ISAs and Self Invested Personal Pensions (SIPPs). Investors can choose from over 1,200 funds from more than 70 investment providers via their fund supermarket, FundsNetwork. This includes a wide range of award winning investment funds and investment trusts.
Fidelity has developed a large education section on www.fidelity.co.uk, to help customers with their investment decisions, these include online tools, such as: myPlan Portfolio Quickstart, Retirement planning tools and Chart and Compare funds. As well as information on ISA allowances, fund prices and an ISA guide to help investors make the most of their annual tax limits.
Fidelity also offers a Wealth Management Service for customers with over ₤100,000 to invest.
Office Address: Fidelity Worldwide Investment, 25 Cannon Street, London, EC4M 5TA