I started up an ASG scholarship fund for my daughter (she's a toddler). I was pressured into this by my ex-wife, though I did also think it was a good idea. She pressured me into making one in Hannah's name (despite it being with my own money, she didn't trust that I would invest for her in other ways and set aside money in the future for my daughter...).
Anyway, I'm torn as to whether to put much into it once it gets past a few thousand. Advantage of it is that its tax free-unlike even Super which has 15% tax on the inputs. No tax on positive earnings.
Disadvantage is that its vague on where and how they invest. The best I can get out of them is that they get a selection of things...I think some is "fund manager" stuff, some might be index funds. Really not sure at all!!!
There are also annual fees, I can't remember how much. But significant enough that the agent told me to make sure I have at least $2000 in it in the first two years, otherwise if I don't put anything else in it will just disappear in the fees...
Honestly its probably better for my daughter's future if I concentrate on owning a PPOR in a good location for future work/studies for her (eg close to good high schools and also easy to get to the Uni campuses), and get myself in a good financial position. My Super preservation age would be when she is 31...if I put extra into my super, I could give her more money around then if she needed it. I won't let her starve or be homeless through her late teens and twenties, and tertiary education.
I also dislike the thought of her having a "trust fund" and other associated potential issues. I want her to learn some Stoic traits, frugal traits, moustache it up. Learn some work ethic, and experience a bit of grind. I think there's nothing wrong with a little suffering while you are at Uni.