best way of saving for grandaughters future?

xylophone

https://monevator.com/best-global-tracker-funds/

might be worth a look.

Oldhand_2

I forgot to say pick the accumulation version of whatever fund you choose.

sadexpunk

Oldhand_2 said:

HedgehogRulez 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

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

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.