Woodford Equity Income for Junior ISA?

Curly39

Any help on this would be greatly appreciated as my head is spinning with all the options and I don't really understand how it all works. My 6 year old son has a CTF which I want to transfer to a s&s ISA, it's current value is around £4000 and I pay 50 per month in. I was looking at transferring to Hargreaves Lansdown and investing in the CF Woodford Equity Income. Is it a good idea to put all my eggs in one basket and invest in one fund or should I split between two and which ones? Are there charge implications for doing this? I have done a little more research and Charles Stanley seem like a cheaper platform option to HL and was also looking at the Vanguard LS 80.

arbster

As a balanced investment, I think most would say that the Vanguard option might be more appropriate. You could probably consider the LS 100, given your son's young age.

xylophone

http://www.thisismoney.co.uk/money/investing/article-1587994/Junior-Isa-Child-Trust-Fund-How-save-invest-children.html


https://forums.moneysavingexpert.com/discussion/5247433

Aretnap

Woodford has a great track record, but his fund is not a very diverse one. It's heavily focussed on UK companies, large companies and on a limited number of sectors (notably pharmaceuticals, financial services and tobacco). If the UK stock market tanks, or if one of those sectors tanks (remember the banks in 2008) it's going to be hit very hard. By all means put some of the fund into it (I have some money in it myself), but it's not a basket in which I'd want to have all of my eggs.

Vanguard Life Strategy is a global fund which invests in many countries and in many different sectors, meaning that it's at much less risk of a single country or a single sector performing badly. If I were going to put all my money in one fund it would be that one, or one like it.