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Investing for grandchildren
satish mittal
Posted: 18 February 2013 11:35:31(UTC)
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I wish to start investing £3600 for a grandchild (A) 2 years age eligible for ISA and for another (B) 4 year old, not eligible due to Trust fund account she owns. No urgency to take money out at present. Will attend private education.
For A,
I thought perhaps ISA is better but I will have to go to different companies every year unless I choose HL or Fidelity but there appears to be excessive charges. Alternatively, I could go for Investment Trusts. Here too, I will have to go to different companies to diversify.
For B
I think I could go for Funds or Investment Trusts. Any thoughts fot IT as most seem to be trading on premium.
Is there a Trading Platform suitable ?
Thanks
SCM
TJLamb
Posted: 19 February 2013 07:58:08(UTC)
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Satish,
I'm not sure why you say you would have to go to different companies each year unless you choose HL? Once you have chosen a platform you can stick with it as long as you want, or you can choose to invest with a different platform each year and as many platforms as you wish, but only one Isa provider each year for investments within an Isa.
Choosing a platform is a matter of debate, I suggest you sit down and compare prices and what's on offer. From previous discussions on this forum it is clear everyone has their own preference and none seem to stand out significantly from the others, except to say it is often acknowledged that HL's service (but not necessarily their charging strcture) is excellent.
Since you are investing for young children you have time on your side so you could consider more risk; off the top of my head in my opinion worth considering - Asia, emerging markets generally, Europe, UK/Asian or global small companies - I invest in all of these.
Some people say they would never buy on a premium, some say it is worth paying the premium for quality and that over the long term it will make little difference anyway; you'll have to make your own mind up.
Good luck.
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satish mittal on 19/02/2013(UTC)
john duthoit
Posted: 24 February 2013 08:50:00(UTC)
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I personally feel that HL have the best offering for the ISA for my eldest grandchild but I struggle with the CTF.

I have a CTF for one of my granddaughters with Selftrade but whilst they allow a monthly contribution to be built up and once that there is sufficient cash you buy the holding but it is not like HL where you can buy on a monthlyt basis with their ISA.

Does anyone know if there is a firm/ platform offering the monthly investment in a CTF with access to a wide investment range to include OIECS /UTs.

HL will not accept the CTF.....Thankyou
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satish mittal on 25/02/2013(UTC)
Fund of Funds
Posted: 24 February 2013 13:00:11(UTC)
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If you are saving for grandchildren for the log term then compare fund platforms. The current difference in charges between platforms is significant and will make a huge difference to the final outcome. Go to comparefundplatforms.com or rplan.co.uk. Hl appear to be be one of the most expensive compared with newer kids on the block. Also some fund companies are now waving charges if you deal direct. Also go for the new type fiunds being issued by most fund companies without trailing fees. Look at Fidelity fund platform which deals with a large range of funds and is offering no initial charges or trailing annual charges on ISA's for a year. Alliance trust looks good
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satish mittal on 25/02/2013(UTC)
Fund of Funds
Posted: 11 April 2013 11:40:20(UTC)
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Never buy anything from someone that contacts you about something you know nothing about.

However you invest , whether shares, funds, ETF then make sure you do it in a tax free ISA wrapper. Always use your allowance every year if you have the funds. It's the accumulation of the ISA funds that make it worthwhile over the years. When it gets large enough the saving in Capital Gains can be significant. Only invest in things that you can put an ISA wrapper around.
Alan Selwood
Posted: 11 April 2013 13:14:38(UTC)
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Where possible, invest in the same things for each grandchild, so that when they are grown up, they get about the same amount (otherwise you may inadvertently cause bad feeling between them).
Use a trading platform if possible, and choose as mentioned by others, making sure that it will cater for needs of both grandchildren.
Although higher risk usually brings higher rewards if time span is long, reliable long-term results usually come from buying quality at a reasonable price and waiting for time and rising dividends to produce the results.
Outside trading platforms, have a look at Personal Assets Trust (www.patplc.co.uk) and Fundsmith (www.fundsmith.co.uk) for investment funds managed for wealth preservation (as opposed to speculation and high risk). both of these run their own ISAs - but check the terms and conditions carefully.
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Stephen Garsed on 22/05/2013(UTC)
P L
Posted: 11 April 2013 14:32:36(UTC)
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I might be wrong but I believe unlike ISAs where you can effectly start a new one each year with a different provider you can only hold one JISA in total (albeit you can switch provider the same as an ISA, but potentually at a cost).

I personally I use X.0.co.uk and invest in IT's, split the money into four chunks which works out at £10 per fund (dealing+stamp duty) with no annual fees. At the time I didn't know how RDR would change things so decided to opt for an approach for which I knew the cost (ie total cost ~ 1.1%).

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