JP Morgan Fleming Asset Management says parents will need to save around £115 a month between now and 2010 in order to raise the £9,000 required to pay tuition fees on a three year university course.
Calculations to cover university course tuition fees between 2008 and 2010 are based on the performance of the Fleming Mercantile Investment Trust between January 1998 and December 2003, rather than the future potential of investment returns.
If a parent made 48 monthly payments of £115 between January 1998 and December 2001, says JP Morgan Fleming , they would then be able to withdraw £3,000 at the end of each year – in 2001, 2002 and 2003, providing they continued to pay their regular premium contributions to top up the investment to the required level.
Further information on the required savings for top-up fees is available in a JPMF booklet called A Guide to Saving for Children,explaining the investment options open to families, is available on the website or by free calling 0800 40 30 30.IFAonline
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