Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Junior ISA ideas for 2018
Will Morris
Posted: 08 January 2018 13:46:26(UTC)
#1

Joined: 05/01/2017(UTC)
Posts: 21

Thanks: 71 times
Was thanked: 6 time(s) in 6 post(s)
All,

Apologies for possible repetition here posting a question regarding JISAs.

I've searched and trawled through previous posts to try and definitively answer this, but comments are months - some are years - old and may no longer be relevant. Seeing as though this involves my two sons I felt the need to play it safe and post fresh. Sorry.

My plan is to set up a Junior S&S ISA, one each for my sons who are 5 and 1. I'll be placing an initial lump sum of £1000 in each followed by a regular monthly payment.

Two questions:

(1) I would very much appreciate views and strategies regarding which funds / ITs / etc to populate the JISA. I've been through many posts on this forum but as I mentioned would like to ensure advice is current.

Looking through the HL website (my platform provider), the fund ideas for JISAs are thoroughly uninspiring: Woodford, HL Multi-Manager, and a Schroder Small Cap fund

http://www.hl.co.uk/inve...or-isa/investment-ideas

(2) Leading on from Q1 above, I'm also conscious that if I were to drip feed into a chosen fund every month, would the charges be punitive over the long term compared to something else? If I'm drip feeding the money in over the long term, would it therefore be better to choose all ITs and / or ETFs?


Any advice appreciated.

Many thanks, Will.
Keith Cobby
Posted: 08 January 2018 14:30:35(UTC)
#2

Joined: 07/03/2012(UTC)
Posts: 432

Thanks: 233 times
Was thanked: 651 time(s) in 263 post(s)
My son has a CTF with F & C which I have been very happy with. I also have a children's investment plan with Baillie Gifford. Both low cost and offering some excellent funds. F & C offer the JISA whereas BG do not.

I invest monthly into both plans with occasional lump sums.
King Lodos
Posted: 08 January 2018 14:57:27(UTC)
#3

Joined: 05/01/2016(UTC)
Posts: 2,081

Thanks: 388 times
Was thanked: 2978 time(s) in 1181 post(s)
HL has free fund dealing – but the 0.5% platform fee is a little higher than some others.

I'd go with Lindsell Train Global and Fundsmith.

They'll underperform at some point – but you can't *really* go wrong investing in great companies .. and while I've sometimes been on the fence with these funds, recent performance is enough to convince me the strategy still works, and is probably the most sensible way to invest
3 users thanked King Lodos for this post.
Chris Todd Davies on 08/01/2018(UTC), Rickenbacker Al on 09/01/2018(UTC), Will Morris on 09/01/2018(UTC)
Paul Easthope
Posted: 08 January 2018 17:27:06(UTC)
#4

Joined: 08/01/2017(UTC)
Posts: 1

I got my son to set up a Junior ISA for my grandson. I made a lump sum purchase of Scottish Mortgage IT after some research. Lump sum purchase works out cheaper with Charles Stanley, can’t comment on other platform providers. I have gone for growth as appossed to income with my SIPPS. I looked at Fundsmith and Lindsell Train but thought SMIT had a better long term record of more steady growth
Law Man
Posted: 08 January 2018 18:20:37(UTC)
#6

Joined: 29/04/2014(UTC)
Posts: 221

Thanks: 69 times
Was thanked: 393 time(s) in 160 post(s)
Type of fund: with OEIC funds you do not pay a dealing charge on each purchase, or stamp duty. With ETFs you pay a dealing charge. With ITs usually both.

An IT group may offer regular monthly payment ITs with no dealing charge, and no platform fee.

With a nominee such as HL usually you pay a platform fee, but check for JISAs.

Choice of asset: I suggest a global equity index ETF. HL offer a global index OEIC fund from L&G with a fund charge of 0.1% or less.
2 users thanked Law Man for this post.
Rickenbacker Al on 09/01/2018(UTC), Will Morris on 09/01/2018(UTC)
Mickey
Posted: 08 January 2018 18:30:49(UTC)
#7

Joined: 21/06/2010(UTC)
Posts: 421

Thanks: 1182 times
Was thanked: 395 time(s) in 196 post(s)
For regular saving, the best options seem to be Keiths' choice or a Vanguard Life Strategy 100 via the Vanguard UK site. My preference for my grandchildrens JISA would be for the F&C JISA. Details at https://www.fandc.com/uk/private-investors/savings-plans/savings-plans-range/junior-isa/
1 user thanked Mickey for this post.
Will Morris on 09/01/2018(UTC)
Andrew McDonald
Posted: 08 January 2018 20:12:34(UTC)
#8

Joined: 21/12/2011(UTC)
Posts: 5

Thanks: 4 times
Was thanked: 15 time(s) in 4 post(s)
For my children (6&4) I have used Interactive Investor (as I have an account) It used to be excellent but increased costs and poor website recently introduced would not make it a good choice for small amounts.

However I have focused on investment trusts for my boys; They give me the sector exposure I want and are traditionally better performance.

I have put in
World heathcare trust
Chelverton Small companies dividend trust
Woodford patient capital trust
Aberdeen Asian Income trust
Polar capital technology trust

Key thing for me is that as I am looking at 10-15yr timescale I am focused on higher risk, long term growth investments.

Your call though.
1 user thanked Andrew McDonald for this post.
Will Morris on 09/01/2018(UTC)
kWIKSAVE
Posted: 08 January 2018 20:21:38(UTC)
#9

Joined: 14/08/2013(UTC)
Posts: 614

Thanks: 94 times
Was thanked: 283 time(s) in 187 post(s)
Will Morris

I do agree that HL at times treat Woody like he's God's gift to investment management.

The performance of his funds since launch is not inspiring.

He will say be patient; he's hardly going to spout I have made mistakes and fear that my touch is going.

1 user thanked kWIKSAVE for this post.
Will Morris on 09/01/2018(UTC)
King Lodos
Posted: 08 January 2018 20:32:46(UTC)
#5

Joined: 05/01/2016(UTC)
Posts: 2,081

Thanks: 388 times
Was thanked: 2978 time(s) in 1181 post(s)
Paul Easthope;55160 wrote:
I got my son to set up a Junior ISA for my grandson. I made a lump sum purchase of Scottish Mortgage IT after some research. Lump sum purchase works out cheaper with Charles Stanley, can’t comment on other platform providers. I have gone for growth as appossed to income with my SIPPS. I looked at Fundsmith and Lindsell Train but thought SMIT had a better long term record of more steady growth


Be careful with SMT.

It may be the exactly the right place to invest (I'm invested in most of the same stocks).

But there are two main reasons it's done well: It's mostly in Tech stocks, and it's leveraged .. Long-term, Tech has been the worst sector to be in (despite the advent of the computer, the internet, smartphone, etc.) – possibly because we consistently overestimate the worth of tech companies .. And leverage means any mistakes are likely to be amplified .. So I can't predict whether it'll be the best fund or the worst over the long-term, but historically, these kinds of investments have attracted a lot of hype, and have tended to be a bit boom and bust
4 users thanked King Lodos for this post.
Tim D on 08/01/2018(UTC), Guest on 09/01/2018(UTC), Will Morris on 09/01/2018(UTC), Captain Slugwash on 10/01/2018(UTC)
+ Reply to discussion

Markets

Other markets