Fund Suggestions for Junior ISA

mazibee

Hi Everyone,

Planning to open Junior ISA for son aged 13 with HL.

Any suggestions on how to distribute £9k in few funds

HSBC GIF Turkey Equity Class BC - Accumulation (GBP)
Jupiter India Class X - Accumulation (GBP)
Baillie Gifford American Class B - Accumulation (GBP)

One from these two
HSBC FTSE All World Index Class C - Accumulation (GBP)
Legal & General Future World ESG Developed Index Class C - Accumulation (GBP)

Plan to put money in 3/4 from above and distribute the amount uniformly.

Any suggestions will be highly appreciated.

Thanks in advance

masonic

Well those first three are very high risk. Not saying that to put you off, but be aware. Arguably if you are going to invest in funds like that the best time to do it is when you are young. The latter two are more typical core investment choices and most would have the bulk in one of those and a small amount in the more exciting ones.

mazibee

masonic said:

Well those first three are very high risk. Not saying that to put you off, but be aware. Arguably if you are going to invest in funds like that the best time to do it is when you are young. The latter two are more typical core investment choices and most would have the bulk in one of those and a small amount in the more exciting ones.

Thanks for your reply.

As mentioned I am investing for my son who will be 13 soon, Obviously that money cant we withdrawn before he is 18 ( I dont intend to and will try to convince him not to withdraw at 18) so plan is to inverst for more than 5 years.

The HSBC Turkey is seems to be the most riskiest one but last 5 years return is faboulous ( I know no one can guarantee the same return in the next five years)

Any other suggetsions on which funds to choose from the HL platform less risky and good returns for the Junior ISA?

masonic

The only thing I'd suggest is reconsidering putting equal amounts into each of the funds. Unless you are comfortable riding the ups and downs for the next 5 years and confident he won't sell up if they take a nosedive after he is 18.

El_Torro

I really don't see the point in putting as much in a Turkish fund as you do in a global fund. If it were me, and bearing in mind it isn't your money, I would keep it simple and invest it all in a global tracker. There's an argument to say that it should be in a multi asset fund rather than a global tracker, since he will be able to access the money in five years time. 

mazibee

El_Torro said:

I really don't see the point in putting as much in a Turkish fund as you do in a global fund. If it were me, and bearing in mind it isn't your money, I would keep it simple and invest it all in a global tracker. There's an argument to say that it should be in a multi asset fund rather than a global tracker, since he will be able to access the money in five years time. 

Any suggestion for multi asset fund (low OCF) on HL platform?

ColdIron

The All World tracker at 0.12% is pretty good and the best of the bunch of your suggestions

xylophone

https://monevator.com/passive-fund-of-funds-the-rivals/

Ciprico

With soaring inflation, a plunging currency and an unstable government maybe do a bit more research on Turkey.

mazibee

So finally I have opted for these after funding the Junior ISA and have placed the deal

25.00%    Legal & General International Index Trust Class C - Accumulation   
50.00%    HSBC FTSE All World Index Class C - Accumulation
12.50%    Jupiter India Class X - Accumulation
12.50%    HSBC GIF Turkey Equity Class BC - Accumulation

ColdIron

Just an observation, and it may be your intention, but the L&G fund has no UK and the All World only 3.29% so overall your UK exposure is less than 2% while EM is greater than 25%