Investing for a child

If you play an important role in someone's young life – as a parent, grandparent, aunt or godfather, for instance – you’re only too happy to ensure a bright future for that child. Going to college, buying a house and other dreams and aspirations come with a price tag. By starting to invest (from early on), however, you can make sure that little one has a tidy capital sum at their disposal when they’re older. The investment-linked insurance product, KBC-Life Solutions4, is a readily accessible way to build up a capital sum for another person, such as a child who’s close to you.

• You choose your beneficiary, i.e. a child or other loved one who’ll ultimately receive the money.
  
• You choose the end date, which you can change at any time. Should you die prematurely, the amount set aside will go straight to your designated beneficiary. What’s more, you can withdraw all or part of the amount before the end date, should you need to.
• You decide how much you invest. You can start an investment plan from as little as 10 euros a month, or you can opt for a lump-sum investment.

KBC-Life Solutions4 is a unit-linked life insurance product. It is a responsible investment fund that invests in companies and countries that embrace the ESG themes of ‘Environment’, ‘Social’ and ‘Governance’. The fund comprises a mix of shares and bonds and is managed for you by professional fund managers.

Investing is something you do over the long term. Your returns may fluctuate during the life of your investment, but ultimately there are more good than bad years on the stock market. If you invest with a long enough time horizon, the positive returns will in principle outweigh the negative.

This investment fund doesn’t offer capital protection, which means the return isn’t guaranteed. However, when you invest, you have more chance of earning a better return than when you save.

You pay entry charges of 2% and a 2% insurance tax on each deposit, but there are no exit charges and the management fees have been automatically factored into the fund's net asset value.

Rather find out a bit more first? If so, feel free to get in touch with your KBC Brussels branch or KBC Brussels Live.