Junior ISA ideas?

1st Jun by Dicky Mint

11 comments 507 reads

Hi all

Planning to put some money into a Junior ISA for my 9 year old grand daughter and am very interested to hear what you guys would consider a worthwhile one off or drip investment for this? I "manage" it on a very irregular basis so this is a buy and hold situation for the next 8 or 9 years. She holds a few Lloyds Banking (LON:LLOY) shares which I purchased with last years allowance at circa 30p each with a view to growth and reinvesting dividends so she has had a good start.

Thoughts? Ideas? Suggestions - welcome. I will of course do my own research before investing :)

Many thanks for reading and thanks in advance for any comments left, they are hugely appreciated.

Regards

Dickie

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Dicky Mint

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11 comments

gus 1065

1st Jun

I did something similar for my daughter about 5 years ago, partly estate planning, partly to get her interested in the stock market. Initially, I picked the shares of companies she was interested in ( Boohoo (LON:BOO) in particular was one that worked out well as I bought these at about 30p a pop and and she’s one of their biggest customers!) or quite “safe” blue chips (oddly enough Lloyds Banking (LON:LLOY) was one of these) which have done less well as a Brexit addled FTSE 100 has gone pretty well sideways since I made the investments. Overall it’s more or less achieved its purpose and she has as much interest in the stock market as any other 20 year old student (not that much really) but she does love to tell me her latest party outfit is simply her being supportive of her investment portfolio. With hindsight, I probably should have just invested in a portfolio of Investment Trusts with different sectors/geographies/themes and forgotten about them!

Gus.

KTF67

1st Jun

i bought my kids funds exposed to green deal (Pictet Clean Energy, Schroders Energy Transition) with a 10 year view

TangoDoc

1st Jun

She might like to have a piece of Character (LON:CCT) if she's into Peppa Pig. Never regretted owning mine. I"m also a fan of Pets At Home (LON:PETS) which could be a reliable source of income. Knowing you have an interest in such businesses might amuse her. Nice to find good investments that would also mean something tangible in a 9 year old's world.

mwjackson

1st Jun

Probably a low cost FTSE tracker, topping up whenever there is a dip.

Dicky Mint

1st Jun

Have to admit I’ve considered picking a global small companies fund and just dripping £100 a month in for the period.

Dicky Mint

1st Jun

Thanks - I quite like this idea. I’ve been invested in Character (LON:CCT) for many years also and enjoyed the ride.

JulWilf

1st Jun

Good responses from others - so let me be a bit of a 'wild card'.

On the basis that kids in general get more engaged when they are involved, I'd maybe split the money in two. For half, I'd pick four or five blue chip, dividend paying in maybe some different sectors and have a conversation with her about which she wants to invest in. For the other half something she is interested in, or something higher growth that you suggest - maybe Character and Boohoo as suggested below.

Is she OK with some maths? If yes, I'd also do a spreadsheet with her to show her age and the value of the £3,000 with a 5%, 6% and 7% return until she is say 65 - to show her the impact of compound interest, the importance of small but steady returns over the long term.

Good luck!

Berksbee

2nd Jun

I would look at a UK small Cos Investment Trust for some of it. It's where growth over time has been excellent.

Phil Mc

2nd Jun

I ringfenced a section of my own ISA for my children. I don't earn enough to bust my annual allowance so I felt I would rather have some control over the situation when the kids are 18 (not that I think they will blow it all on receipt). I drip feed monthly into vanguard lifestrategy funds but also have some uk smaller co funds and Japan IT exposure. I have just finished reading the idle investor and am thinking of using the ideas in it going forward since there are at least 10 years left. In a couple of years I might look to engage them in managing some of it.

crazycoops

6th Jun

We recently set up a Junior ISA for our grandson and put the whole into VANGUARD FTSE ALL-WORLD UCITS ETF (LON:VWRL) - he has time on his side and global equities are likely to be a long-term winner. My expectation is for a long-term CAGR of 8% which is great when compounded over 18+ years and added to along the way to benefit from pound cost averaging.

Tommy H

6th Jun

Hi Dickie

I have gone with Fundsmith for both my Kids JISA's

They do initial lump sum of £1000, then subsequent of £250 for lump sum payments with monthly of £100.

Currently I am paying in monthly, as I have basically been giving the kids the money I would have spent on diesel each month commuting during lockdown, though that is obviously changing as now having to fill up each month again and suspect it will soon be back at every week...

Historically I have put money into their building society accounts each month, as I do a month end sweep up so anything over a certain balance in the current account goes into my wife and their savings (50:25:25). Then I have done the one cheque at the start of each tax year, which has always been within the limit.

The long term CAGR is 17.9%

I have not tracked what the different deposits have done, but having opened in 2014 and 2015 respectively the simple calculation shows >80% increase to money deposited (all years).

Tommy

ps. There is no wrong answer in what you choose!

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Dicky Mint

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