I have a very young daughter <3 years old in which we have a high interest bearing account held in trust for her (current interest rate 0.85% p.a.) as I'm sure most parents have for their kids. Through birthdays and accumulation she has a small starting balance of ~$2,500.
I am thinking of alternative investments or ideas for the funds and interested to know your thoughts.
Being such a small investment would you consider investing into a manged fund or index fund on the ASX? (i.e. Argo Investments, Vanguard etc).
It would be a passive investment and funds would not be needed until she's 18 years.
What have other parents done for their children?