Junior ISA investment

Madeinireland101

Hi - I’m just about to deposit my first sum into my new grandsons Junior ISA and I’d like to get some views on the best low cost well diversified passive index fund that I could put the money into bearing in mind it won’t be touched for 18 years. By default I’d probably use the Vanguard Lifestrategy 100 acc fund - but I’m aware that hasn’t got the best diversification and maybe not the best one to choose. Can anyone suggest any that they would pick instead that they would consider more suitable.

Thanks…

ColdIron

VLS is well diversified. It invests in the same sectors and geographies as a global tracker including emerging markets. The difference is in the allocations, particularly US and UK. You could make an argument that putting 60% - 70% in one geography is less diverse

eskbanker

Madeinireland101 said:

Hi - I’m just about to deposit my first sum into my new grandsons Junior ISA and I’d like to get some views on the best low cost well diversified passive index fund that I could put the money into bearing in mind it won’t be touched for 18 years. By default I’d probably use the Vanguard Lifestrategy 100 acc fund - but I’m aware that hasn’t got the best diversification and maybe not the best one to choose. Can anyone suggest any that they would pick instead that they would consider more suitable.

You may not consider it important, but just for clarity, VLS100 doesn't fit the bill if you're looking for an index fund, as it doesn't track an index!

If you're looking for global equities, then funds that do track indices would include the likes of Vanguard's FTSE Global All Cap or HSBC's FTSE All World (and many others)....

cloud_dog

Madeinireland101 said:

Hi - I’m just about to deposit my first sum into my new grandsons Junior ISA and I’d like to get some views on the best low cost well diversified passive index fund that I could put the money into bearing in mind it won’t be touched for 18 years. By default I’d probably use the Vanguard Lifestrategy 100 acc fund - but I’m aware that hasn’t got the best diversification and maybe not the best one to choose. Can anyone suggest any that they would pick instead that they would consider more suitable.

Thanks…

Hopefully the JISA is actually with either Fidelity or HL, as neither apply a platform charge. 

DavidT67

Aren't investment decisions made by the parent who is the registered contact for the account, rather than other relatives who gift monies ?

Joey2013

Just set up jisa's for my 2 grandchildren with HL investing into the HSBC ftse all world fund.

DavidT67

Joey2013 said:

Just set up jisa's for my 2 grandchildren with HL investing into the HSBC ftse all world fund.

Yeah, unless you are their guardian, you shouldn't have been allowed to do that.

Madeinireland101

Thanks for all the comments and suggestions. I didn’t setup the JISA - his parents did. It is with HL. I have simply deposited in it in cash via a telephone call to HL. 

I am merely helping them make the best decision on how to invest it. Yes they could have come on here themselves but they don’t have an account or any experience of investing. While at I invest I shares I only do it with money I can afford to lose and would not suggest they do that. I don’t use funds much myself - I probably should do but I enjoy the risk of shares a bit. So although I know that funds are probably the best way forward I thought I’d use the collective wisdom of some people on here to get to a resonable fund. Hope that helps explain. 

Cheers…