Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jj65
    • By jj65 10th Aug 17, 2:30 PM
    • 2Posts
    • 0Thanks
    jj65
    Junior ISA
    • #1
    • 10th Aug 17, 2:30 PM
    Junior ISA 10th Aug 17 at 2:30 PM
    I've just moved my daughters Child Trust Funds to Junior ISA's and need to make a decision about what funds to invest in, I've been looking at either a VLS80 or VLS 100 but am not sure which way to go. Assuming they want to use the money when they are 18 rather than leave it invested how should I invest as they have 4 and 6 years respectively so not the long term that would be expected for a pure Stocks and Shares investment?
    Also I've read some posts that mention that bonds are not a very good investment in times of low interest rates if this is true what should I use in order to diversify?

    Thanks.
Page 1
    • xylophone
    • By xylophone 10th Aug 17, 3:47 PM
    • 22,396 Posts
    • 12,918 Thanks
    xylophone
    • #2
    • 10th Aug 17, 3:47 PM
    • #2
    • 10th Aug 17, 3:47 PM
    Remember that you can have both stocks and shares and cash - you could hedge your bets.

    https://www.gov.uk/junior-individual-savings-accounts/overview
    • Alexland
    • By Alexland 12th Aug 17, 7:42 AM
    • 68 Posts
    • 38 Thanks
    Alexland
    • #3
    • 12th Aug 17, 7:42 AM
    • #3
    • 12th Aug 17, 7:42 AM
    4 to 6 years is a fairly short timrframe to be investing and within a couple of years there will only be 2 to 4 years. Maybe a bit more if they stagger the withdrawals over 3 years eg Uni.

    VLS80 or VLS100 seem very high risk for your situation but I am also concerned about bond interest rate sensitivity.

    Maybe if you want to take on risk for the possibility of return buy both VLS60 and VLS80 to give you portfolio a 'VLS70' weighting? If it goes well for you in the first 2-3 years then I would be tempted to sell and move to a cash JISA to lock in the benefits. If it goes badly hold for as long as possible and try and keep withdrawals to a minimum.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,547Posts Today

9,029Users online

Martin's Twitter