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Funds for a 16 year old
John Roycroft
Posted: 05 June 2017 09:01:22(UTC)
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Having spent the last 15 years building up my children's university fund (whilst also adding to my pension), I would like to begin a regular investment to help them build up their own pension fund to begin when they reach 16.

I hope that the money will stay in their JISA/ISA long term so which funds would investors recommend for a long term holding? Thank you.
Mickey
Posted: 05 June 2017 11:51:21(UTC)
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All Investment Trusts -
Scottish Mortgage
Foreign & Colonial
Witan
4 users thanked Mickey for this post.
Keith Cobby on 05/06/2017(UTC), John Roycroft on 06/06/2017(UTC), what me, worry? on 12/06/2017(UTC), dlp6666 on 21/06/2017(UTC)
John Roycroft
Posted: 05 June 2017 13:46:53(UTC)
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Many thanks Mickey.
1 user thanked John Roycroft for this post.
Mickey on 05/06/2017(UTC)
Law Man
Posted: 05 June 2017 14:29:15(UTC)
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John: I agree with Mickey: good global ITs. I suggest you compare the performance of the MSCI World index tracker as a possible supplement.

You have a long term investment period: 40 to 50 years. So equities with monthly contributions are appropriate.

Over so long a period, charges are critical. You can hold ETFs and ITs for £200 p.a. Avoid funds, where 0.25% to 0.45% p.a. over decades devastates the return.
3 users thanked Law Man for this post.
Guest on 05/06/2017(UTC), Mickey on 05/06/2017(UTC), John Roycroft on 06/06/2017(UTC)
John Roycroft
Posted: 06 June 2017 03:54:46(UTC)
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Thanks Law Man
Rickster
Posted: 06 June 2017 08:54:52(UTC)
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I used Fundsmith's own junior ISA platform for this purpose.This becomes a full ISA at age 18 .There is no platform fee and the fund charge is 1%.The fund gives worldwide exposure,mainly U.K. and USA .All his birthday and Xmas monies have gone into it and he has more than doubled his investment in 5 years which has turned him from a spender to a Saver!
1 user thanked Rickster for this post.
John Roycroft on 07/06/2017(UTC)
Pensioner
Posted: 11 June 2017 13:34:17(UTC)
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I agree with Rickster, Fundsmith has proved an excellent investment for myself and wife. We deal direct with Fundsmith in the class T share/ISA. At launch in Nov 2010 a £1 share is now worth 345.51p as of 9/6/17. I have 3 grandchildren in the Fund. One working and 2 in college with another 2 grandchildren intending to invest. They are all over 18yrs of age. They use the HL site to invest which automatically put them into the "I" class share which was 347.79p on 9/6/17 which gives a better return. Note: To deal direct with Fundsmith you would need to invest 5 million to be placed in the "I" class share (I wish!). So HL is a good option.
My daughter uses HL to manage her SIPP with Fundsmith a major holding. She also keeps and eye on the start up HL Vantage Fund & Share account of the 2 children in college. In a recent conversation the grandson who opened and account with £100 in October 2016 has seen this grow to £119.26 (19.39%). My granddaughter who opened her account, also in the same month with £150 has seen it grow to £180.78 (20.66%).
As a private investor myself with the current political situation in disarray and Brexit looking more complicated than ever, I would advise a global investment either in and OEIC fund or Investment Trust. Fundsmith fits the bill (OEIC) , as do FRCL sitting at a 7 to 8% discount or SMT at a premium of 2 to 3 %. My choice would be FRCL over 500 companies in 30 odd countries. As good as GOLD.
2 users thanked Pensioner for this post.
Keith Cobby on 11/06/2017(UTC), John Roycroft on 11/06/2017(UTC)
Keith Cobby
Posted: 11 June 2017 14:03:43(UTC)
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Better than gold| Good choices for investment and starting children early is the way to go. My son has FRCL and FCS in his CTF and SMT, Shin Nippon etc in the BG childrens plan.
2 users thanked Keith Cobby for this post.
John Roycroft on 11/06/2017(UTC), dlp6666 on 21/06/2017(UTC)
John Roycroft
Posted: 11 June 2017 14:29:44(UTC)
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Many thanks for your advice.
Good to see Pensioner that you have your family managing their own investments.
Learning how to invest independently has been a huge learning curve for me over the last 6/7 years - I came to the game quite late in life.
I hope that my children can learn from my experience and show an interest in managing their own finances.
My 15 year old son - who is in the first year of GCSEs - will receive the Economics prize for the highest score in his year group - so it seems my interest shows signs of being passed on!
Many thanks again for your insights.
1 user thanked John Roycroft for this post.
Tim D on 14/06/2017(UTC)
Alan Selwood
Posted: 11 June 2017 19:21:39(UTC)
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There's nothing to beat a hands-on approach with some profit to show for it, to turn teenage spendthrifts into sensible investors!
1 user thanked Alan Selwood for this post.
John Roycroft on 12/06/2017(UTC)
Alan Selwood
Posted: 11 June 2017 19:24:02(UTC)
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For the 16 year old, a regular investment into SMT + Fundsmith + something covering the Far East + Japan should be useful. Always leaving aside thoughts of needing the money in the next 5 to 10 years to buy a house or whatever!
1 user thanked Alan Selwood for this post.
John Roycroft on 12/06/2017(UTC)
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