A LONG TERM VIEW
You can choose to invest directly in equities for a child or through a pooled investment such as an investment trust.
The chart below shows how equities, gilts and cash have performed over the past 20 years.
You should be aware that inflation can have the effect of eroding investment return as prices increase and the purchasing value of money decreases.
Source: Morningstar, Mid to mid prices, net income reinvested between 31/08/91 and 31/08/11.