Fund investing for a child
The earlier you start, the more your investments can grow.The most important thing is starting. When saving for a child, time is on your side, and even small sums can add up to thousands of euros by the time your child reaches adulthood.
You always invest affordably: as an OP cooperative bank owner-customer, you can purchase nearly all funds without fees and earn 0.35% in OP bonuses this year. Make your child an owner-customer!
Find suitable investments from more than 60 funds. The most common investments for a child are saver's funds, index-linked funds and responsible investment funds. Make a one-off investment or start monthly investment with as little as €10 a month.
Why start investing in funds for a child?
It pays to start saving on behalf of a child in good time, whether you are the mother, father, godparent or grandparent. This will leave time for even small investments to accumulate before the child grows up. With a long investment horizon, you make the most out of the compound interest effect.
Monthly investment in a fund is the most popular and easiest way to build a nest egg for a child. Through funds, you invest diversely in securities in different countries. Investing in funds is a great way to diversify your investments in different companies and countries. Your investments are managed by fund experts and portfolio managers.
Parents can invest directly in a fund on behalf of their children. Cash gifted by grandparents and godparents can be collected in the child's current account. From the account, the savings can be invested in a fund to grow over time. Saving for a child is a good opportunity to teach financial skills by setting an example that inspires the child to start saving and investing.
How do I start fund investing for a child: How to get started
To invest in a fund, the child needs a current account and must be an OP customer. At least one parent must also be an OP customer. If the child does not hold a personal current account, you can easily open it online. Proceeds from the sale of fund units are paid into the child's current account.
Open a current account for a child here
Buying and selling funds is possible with the guardians' user ID on OP-mobile and at op.fi. The child can personally buy and sell funds at the age of 18 or with the guardians' consent, after reaching the age of 15.
Taxation of fund investments
Profits from mutual fund investments are subject to capital gains tax. The capital gains tax rate is 30% up to 30,000 euros and 34% for amounts that exceed this. If fund units are sold at a loss, this is deducted from your capital income.
You can sell your fund units any time. The fund management company will inform the Tax Administration of your mutual fund holdings, including any sale of fund units, and dividends you have earned from income units. Make sure that such information is correct in the pre-completed tax return you receive.
What funds should I buy for a child?
A child's investment portfolio should include at least a few different funds. You can start by saving in a single fund and slowly diversify to other funds. Diversifying allows you to even out risk and avoid major value fluctuations.
The most popular company funds in 2023 for saving on behalf of a child are:
How to invest 11,000 euros for your child
Expected return: 6.5%
Investment period: 18 years
Amount saved: €6,480
Income: €5,188
Total: €11,668
How can a child invest in a fund on their own?
Investing in funds as a minor is easy with the guardians' consent. The parents may authorise their child to manage their own investments once the child turns 15. When a fund portfolio has been opened for the minor, they can independently sell and buy funds in OP-mobile.
Authorise a young person's saving and investing here
What happens to the funds when the child turns 18?
After the child has turned 18, the management of the funds is transferred from the parents to the child. We advise having a discussion with the child about savings and investments, and how to manage them. We are also happy to help young people manage their savings on a long-term basis and responsibly. A person aged 18 or over may also book an appointment for free-of-charge investment advice.