Junior Investment ISA

lisa7_96

I'm tempted to open a Junior Investment ISA for my 10 year old grandson. I am risk averse but would like to try and get the best return for him. What are your thoughts and the best way to go about it please?

jaybeetoo

Go for it! You could set up a standing order to put money in each month. Given he’s only 10, there is plenty of time to build up a decent long term investment. You say you’re risk averse but putting it in cash is not risk free and is unlikely to keep up with inflation.

Have a look at Vanguard LifeStrategy Global funds. They are fairly low cost. Given the age of your grandson, consider the 80% or 100% equity funds.

xylophone

See https://www.gov.uk/junior-individual-savings-accounts

Parents or guardians with parental responsibility can open a Junior ISA and manage the account, but the money belongs to the child.

Anyone can pay money into a Junior ISA, but the total amount paid in cannot go over £9,000 in the 2026 to 2027 tax year.

Remember that providers have their own requirements concerning payments into the JISA.

dunstonh

I am risk averse but would like to try and get the best return for him. 

What risks are you referring to?

I suspect you mean investment risk, but of course, if you don't take investment risk, then you increase shortfall risk and inflation risk. Go too low risk, e.g. Cash and you actually can potentially increase your overall risk to be higher than taking a sensible level of investment risk

Given that he's ten and the time scale it's likely to be there for, it would probably be daft to go with 80 or 100% equities unless it's a regular contribution rather than a single contribution.