Firm highlights usefulness of 'student investments'

Private banking wealth management clients should consider investing to help fund their childrens’ university studies, an industry group has suggested.

New analysis from the Association of Investment Companies (AIC) showed that one in four students are leaving university over £20,000 in debt.

A poll of parents from the organisation also revealed that three in four parents feel that the general economic downturn has increased the ’financial strain’ caused by funding these studies.

The AIC said that, if £50 a month was paid into the average investment company or private wealth management firm, the holdings would grow to £18,000 over an 18-year period.

This would be enough to cover most student debts - and compares with a total cash investment of £10,800.

Annabel Brodie-Smith, AIC communications director, said: ’Investment companies offer a useful way for parents to access the long-term potential of the stock market.

’By investing in a variety of companies on your behalf, investment companies can spread investment risk and they are available from as little as £50 a month, or £250 lump sum.’ADNFCR-2318-ID-19309045-ADNFCR