Junior Stocks & Shares ISA - managing

Hektor_159

Hi All,

I have 3 kids (5,3,1 YO) and finally I'm about to open JISA for them. Because I'm also investing on a stock markets and it's long term investment,   I decided to Stocks & Shares would be the best decision. I have only one main question, as I couldn't find clear answer and hopefully you might help me with it:

How funds are managed in JISA S&S?    
After opening JISA S&S, do I need to join some kind of scheme, buy unit of some funds/ETF or I can buy direct stock i.e. RR, RIO, BP L&G? 
I'm interested the most to buy a direct stock. 

Thanks
Michal 

MX5huggy

Yes once the money is in the JISA you have to decide what to invest in, although you can set it up so regular payments are invested automatically in your chosen investment. 

If you’ve not found it Fidelity offer fee free JISA’s whole of market platform with funds ETF’s and shares.  https://www.fidelity.co.uk/junior-isa/choose-investments/#tab-link

Individual shares is a very high risk strategy, my 2 have Vanguard ESG Dev World fund in theirs, it’s cheap diversified, and is not invested in really nasty stuff, cigarettes, guns or !!!!!! etc.

Think about the fact the kids get the money no  strings attached at 18 I invest in my own ISA and pensions before the JISA’s mine are just at the level of one cheap car or a nice holiday, if that’s what they did with them then I would not be disappointed. But if it was many thousands of pounds that they spent on cars girls and drink while wasting the rest I might feel differently.

Noneforit999

I use HL for my kids S&S Junior ISA and it works well.

I just login as them, pay money in by debit card and invest in the funds. 

cloud_dog

Hektor_159 said:

Hi All,

I have 3 kids (5,3,1 YO) and finally I'm about to open JISA for them. Because I'm also investing on a stock markets and it's long term investment,   I decided to Stocks & Shares would be the best decision. I have only one main question, as I couldn't find clear answer and hopefully you might help me with it:

How funds are managed in JISA S&S?    
After opening JISA S&S, do I need to join some kind of scheme, buy unit of some funds/ETF or I can buy direct stock i.e. RR, RIO, BP L&G? 
I'm interested the most to buy a direct stock. 

Thanks
Michal 

Most people simply set up a regular investment, and I would suggest Fidelity is the provider to go with (zero platform fees and zero transaction fees when investing in OEICs/funds), and I feel a reasonable starting point might be to consider a cheap global tracker fund.

Some people have concerns around young adults taking responsibility for this money at age 18.  You can manage this simply by stopping contributing once the JISA account(s) reach a level you feel is appropriate.  We did this and then continued investing in an account in our name(s) for their benefit.

Albermarle

Hektor_159 said:

Hi All,

I have 3 kids (5,3,1 YO) and finally I'm about to open JISA for them. Because I'm also investing on a stock markets and it's long term investment,   I decided to Stocks & Shares would be the best decision. I have only one main question, as I couldn't find clear answer and hopefully you might help me with it:

How funds are managed in JISA S&S?    
After opening JISA S&S, do I need to join some kind of scheme, buy unit of some funds/ETF or I can buy direct stock i.e. RR, RIO, BP L&G? 
I'm interested the most to buy a direct stock. 

Thanks
Michal 

As mentioned buying individual company shares is a high risk strategy. Even well know big companies can go out of favour over the long term and drop alarmingly in value.
The risk can be mitigated/spread to some extent by buying a lot of different ones. However it is just easier to buy a cheap global tracker with thousands of companies shares within them. 

Hektor_159

Thank you all for your answers! Very useful