IF YOU have not yet found a home for your baby’s Child Trust Fund (CTF) voucher, you are not alone. The Children’s Mutual, the most prolific CTF provider, believes that more than half of the

1.7 million CTF vouchers issued are “sitting in a to-do pile in kitchens”. Family Investments, another key CTF provider, puts the figure at nearer 80 per cent.

It no longer pays to bide your time. On Wednesday, CTF accounts were activated and started to gain interest. David White, chief executive of the Children’s Mutual, says: “Every day that parents delay opening their child’s CTF account means a potential reduction in the value of the child’s lump sum at 18. If these parents wait one year, until the Inland Revenue steps in to place the voucher, the (collective) loss of return could be as much as £29 million.”

Bewildering choice is the main reason that parents give for their lack of action. To cut through the confusion, consult our charts below to find the right investment for you.

A full list of providers and distributors can be found on the official CTF website at www.childtrustfund.gov.uk. There may appear to be nearly 100 products to choose from, but many CTF distributors operate under one umbrella.

There are only 30 providers. A distributor simply markets a provider’s offerings. The Children’s Mutual works with more than 20 distributors, including Boots and Mothercare. Family Investments includes the Post Office and Barclays among its partners. Some providers act as their own distributors.

The difference between stakeholder and stock market (or non-stakeholder) accounts has also confused many parents. Stakeholders have set restrictions. For example, charges are capped at 1.5 per cent and funds must be moved into less volatile investments in the last five years of the term.

Stock market accounts have no restriction on charges or investment management. They carry the highest risk but have the potential for higher returns. You may have to make minimum monthly contributions. A few stock market accounts allow you to pick your own funds or shares.

Of the stakeholder choices, Justine Fearns, of Chase de Vere Financial Solutions, an independent financial adviser (IFA), likes HSBC’s UK Growth and Income Fund. Her stock market pick is the Children’s Mutual, which offers 12 funds. Matt Pitcher, of Towry Law, another IFA, favours F&C’s “cost-effective” selection of investment trusts.

Patrick Connolly, of John Scott & Partners, another IFA, picks the Family Investments stakeholder, which is managed by New Star. He adds that tracker funds with charges of 1.5 per cent are poor value.

If you are determined to stick to cash savings, compare the eight CTF cash accounts on the Moneyfacts website at www.moneyfacts.co.uk.