We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

best way of saving for grandaughters future?

Options
124»

Comments

  • I forgot to say pick the accumulation version of whatever fund you choose.
  • Oldhand_2 said:
    Why VLS80 though! Yuk’

    My thoughts too. Personally I would go for VG Global All Cap, VG Developed World ex-UK Equity, or Fidelity Index World. All three have produced good returns, being good, better and best in that order, and are fit and forget. There are other global all equity funds of course, but these are what I'm in with my grandchildren's JISA and JSIPP's. The VGLS80 has 20% bonds and a heavy UK bias, both of which a long-term investment doesn't, or may not, need.
    thanks, and im just about to read that monevator link too.  not just for the JISA but also for a SIPP ive just moved to Interactive Investor.
    i did read during my googling that if companies go bust, then only £85,000 is 'covered', so should maybe take that into account too (not for my grandaughter, but for my SIPP).  so do you think investing in just one of these for the JISA, and all 3 of these funds for the SIPP would make for a good strategy?

    thanks
  • Oldhand_2
    Oldhand_2 Posts: 44 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 28 December 2024 at 12:58PM
    As I undestand it the £85k protection only applies to the cash in your account held by the providers, such as cash ISAs. The money you invest in funds or shares is used to buy (fractions of) shares in the companies that make up the fund, and those companies spend it as they seem fit. So if a provider (Vanguard for instance) goes bust you will still own your investment in the fund. Of course some of the companies in the fund may go bust, and you'll lose your tiny investment in that company, but hopefully more will prosper than fail.

    As for where to spread your investment I can only offer my own opinion. I would invest in one fund for the JISA and JSIPP as it is easier to manage through the parents. For a SIPP I would use two or maybe three funds: the funds are very similar in what they cover and what they return, but having two or three makes life a little more interesting. You would do just as well with one fund though, if you are more hands off. Read up here and on YouTube, and start moderately.
  • wmb194
    wmb194 Posts: 4,904 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 28 December 2024 at 3:36PM
    Oldhand_2 said:
    As I undestand it the £85k protection only applies to the cash in your account held by the providers, such as cash ISAs. The money you invest in funds or shares is used to buy (fractions of) shares in the companies that make up the fund, and those companies spend it as they seem fit. So if a provider (Vanguard for instance) goes bust you will still own your investment in the fund. Of course some of the companies in the fund may go bust, and you'll lose your tiny investment in that company, but hopefully more will prosper than fail.

    As for where to spread your investment I can only offer my own opinion. I would invest in one fund for the JISA and JSIPP as it is easier to manage through the parents. For a SIPP I would use two or maybe three funds: the funds are very similar in what they cover and what they return, but having two or three makes life a little more interesting. You would do just as well with one fund though, if you are more hands off. Read up here and on YouTube, and start moderately.
    For investments the FSCS covers you for fraud and mismanagement e.g., if you buy 100 units of something but it turns out the broker only bought/has 80 units the FSCS will make up the difference up to the amount of £85k.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.