As one of the financial advisors who believes that it is expensive to move from one fund to another, let me answer your question. What tends to happen when you start switching between funds is that you chase the funds whose past performance makes them look attractive - and in so doing you run the risk that they might have peaked and are, in fact, on their way down. I am 70 and would like to leave a little gift for my four grandchildren. But the more I seek an answer the more confusing it becomes, because there are so many options. Please do not publish my name as I would like my grandchildren to be surprised one day.
Unit trusts offer a number of advantages.
Obviously, this is not your intention now, but you may take a different view in the future. It is often argued, in favour of endowment policies, that it is good to be locked in for 20 years, forcing you to leave the cash for its original purpose. My response to this frequently cited argument is that personal circumstances, legislation and investment markets are always changing. Unit trusts are transparent in that the cost structures are well known and you are able to ascertain performance by checking newspapers etcetera. Dividends are exempt from tax which makes this type of investment particularly attractive.