HL Junior SS isa Fund selection

plumb1_2

Hi All
I have several grandchildren, one of my sons has opened a HL junior s isa for 2 of them. And as of date not added any cash.
I have agreed to deposit £100 and set up a £25 monthly payment. Looking at a 10_15yrs investment 
Questions are can a fund be purchased straight away for £100 , and can the 25 p/m be added to the same fund that is chosen?
Plus with so many funds available which to choose? With my very limited knowledge I would think a equity fund?

newatc

Yes you can deposit £100 and state which fund you wish to invest in (it will not be literally immediate, it will probably be bought the following day but in the scheme of things, that's not going to matter) and you can set up a regular payment for £25 to buy in the same fund (or alternate fund).
You'll probably looking for a diversified fund so here's a link that may help you choose https://monevator.com/best-global-tracker-funds/.

HL is a good site for beginners and their customer service is better than most.

Alexland

plumb1_2 said:
one of my sons has opened a HL junior s isa for 2 of them.

That's a shame paying HL their 0.45% pa ongoing charge when Fidelity would offer a similar selection of funds with a similar level of customer service on a JISA with no ongoing platform charge until age 18. If no money has been added it's not to late to simply close the HL accounts.

SharpShooter

newatc said:

Yes you can deposit £100 and state which fund you wish to invest in (it will not be literally immediate, it will probably be bought the following day but in the scheme of things, that's not going to matter) and you can set up a regular payment for £25 to buy in the same fund (or alternate fund).

Not accurate. You can set up £25 DD to pay in but must buy minimum £100 shares at a time.

Alexland has given good advice, will look into it myself.

Alexland

SharpShooter said:
Alexland has given good advice, will look into it myself.

It's not just about the platform being cheaper (free if you stick to funds) but it's easier to operate as you don't need to maintain a cash balance to pay fees so whatever is contributed can just be fully invested.

plumb1_2

Alexland said:

That's a shame paying HL their 0.45% pa ongoing charge when Fidelity would offer a similar selection of funds with a similar level of customer service on a JISA with no ongoing platform charge until age 18. If no money has been added it's not to late to simply close the HL accounts.

I have had a look at the Fidelity site and looked at 2 funds
fidelity investment funds liv multi asset allocator growth fund W fee 0.35%. And
fidelity multi asset allocator adventurous fee 0.35%

but with fidelity you have to deposit £1k I think ?  So maybe best to use HL ?

plumb1_2

SharpShooter said:

newatc said:

Yes you can deposit £100 and state which fund you wish to invest in (it will not be literally immediate, it will probably be bought the following day but in the scheme of things, that's not going to matter) and you can set up a regular payment for £25 to buy in the same fund (or alternate fund).

Not accurate. You can set up £25 DD to pay in but must buy minimum £100 shares at a time.

Alexland has given good advice, will look into it myself.

So if the has to be £100 before buy into a fund.
what I want is that when the £25 monthly payment is added that it automatically buys into the fund selected, don’t want to keep logging in to to this,  Basically just buy a fund and maybe review every 12 months 

george4064

I’m terms of fund choice I would almost certainly go for 100% passive global equity fund. Over their very long investment horizon fees will make a big difference and high risk can be taken in this situation.

MX5huggy

plumb1_2 said:

Alexland said:

That's a shame paying HL their 0.45% pa ongoing charge when Fidelity would offer a similar selection of funds with a similar level of customer service on a JISA with no ongoing platform charge until age 18. If no money has been added it's not to late to simply close the HL accounts.

I have had a look at the Fidelity site and looked at 2 funds
fidelity investment funds liv multi asset allocator growth fund W fee 0.35%. And
fidelity multi asset allocator adventurous fee 0.35%

but with fidelity you have to deposit £1k I think ?  So maybe best to use HL ?

Fidelity minimum is £25 https://www.fidelity.co.uk/junior-isa/
they offer 3000 plus funds most of them not Fidelity. Fairly sure your £25 would be invested straight in your fund selection. Don’t select an ETF (exchange traded fund) because unlike traditional funds you can’t buy “bits” of units so the £25 would have to be saved up until you had enough to buy 1 unit. 

My 2 little darlings have JISA’s both invested in Vanguard ESG developed world fund https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview?intcmpgn=equityglobal_esgdevelopedworldallcapequityindexfund_fund_link

Its cheap (0.2% plus platform fee) the ESG means it doesn’t hold some really bad stuff (7 year olds should not own gun companies or Tobacco companies). Downside is there’s no Emerging market exposure. 

One is held on Vanguard direct which costs (0.15%) the other on HL (0.45%) because for the first one I didn’t know about Fidelity zero platform fee and the second was A Child Trust Fund transfer which Fidelity don’t offer. Both will be transferred to Fidelity as soon as I can be bothered. 

plumb1_2

george4064 said:

I’m terms of fund choice I would almost certainly go for 100% passive global equity fund. Over their very long investment horizon fees will make a big difference and high risk can be taken in this situation.

Yes I was thinking of a global equity fund, but there’s so many to pick, haven’t a clue. Ask me a plumbing question and I am ok . Do I go for a fidelity or vanguard fund ? What’s accumulative fund ?

SharpShooter

Sounds like OP has alot of research to do before getting started.

I was going to suggest my personal opinion that if you are investing for the longer term i.e a child then you would be far better off in an actively managed fund.

I chose Blackrock World Tech and Baillie Gifford Positive Change for my children.