Modest monthly investments for child

chrisstevens

Hi all,

I'd be grateful for any comments or advice on our current plans for starting some modest investments for our daughter.

We are looking to invest £50 a month and her grandparents are also looking to invest £25 a month both for approx 18 years.
We would like to keep these two accounts separate and tax free.

From what I have understood so far it may be best to invest the £50 in an s&s ISA and the £25 in an investment plan such as sit or aberdeen etc.

Does anyone know a decent comparison site for fees etc or know of any particular accounts that stand out?

Any comments welcome

Thanks
Chris

jimjames

Aberdeen is about the cheapest option you can get but sit may be similar although I've not used them. I'd suggest just checking the 2 websites to compare them. Anything that matches or beats Aberdeen is good value.

Any reason why the 2 amounts are going to be in different accounts? They could all be in the investment trust plan.

chrisstevens

jimjames wrote: »

Aberdeen is about the cheapest option you can get.

Any reason why the 2 amounts are going to be in different accounts? They could all be in the investment trust plan.

I've had this discussion with the Mrs as I was obviously for lumping the two sums together but she prefers them separate to show what we have given to her and what her grandparents have given to her.

Might sound daft but that's what she wants

kidmugsy

See pp 50 & 51.
http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Jul14.pdf

jimjames

chrisstevens wrote: »

I've had this discussion with the Mrs as I was obviously for lumping the two sums together but she prefers them separate to show what we have given to her and what her grandparents have given to her.

Might sound daft but that's what she wants

Perfectly logical and with ones like Aberdeen there's no disadvantage to separate accounts. Others like f&c have fixed fees so you'd be paying double with them.

xylophone

Your daughter is a new born? Then she is eligible for JISA- for tax reasons, it would be easier to use this for the parental contribution

https://www.gov.uk/junior-individual-savings-accounts/overview - you can choose a scheme or go self select - examples http://www.money.co.uk/savings-accounts/junior-isas.htm

https://www.hl.co.uk/free-guides/junior-isas

The grandparents might like to use an investment trust held in bare trust

http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/


http://www.bailliegifford.com/individual-investor/how-to-invest/investing-for-children.aspx

chrisstevens

Thanks guys, appreciate the help

retepetsir

We went down the JISA route and chose Halifax who pay 6% if you have another account with them, so I just opened another savings account for myself in order to get this rate

chrisstevens

retepetsir wrote: »

We went down the JISA route and chose Halifax who pay 6% if you have another account with them, so I just opened another savings account for myself in order to get this rate

I've missed the boat on that one unfortunately as its now down to 4%.

chrisstevens

I think I have made a decision to go with the JP Morgan Junior ISA and the Aberdeen Investment Plan.

Based on the info I have provided are there any reasons why these two options would not be a wise move?

Now I guess its the task of choosing which fund/trusts to invest in, any comments for what would be a smart balance for both?

Thanks again
Chris

westy22

Can't give you any advice as such but I am a fan of JP Morgan Claverhouse IT (JCH) for UK Growth and a fan of Scottish Mortgage Investment Trust (SMT) for Global Growth. Both are volatile but if you are investing for 18 years or so I reckon they are well worth a look.