Junior ISA

jj65 · 10 August 2017 at 2:30PM

I've just moved my daughters Child Trust Funds to Junior ISA's and need to make a decision about what funds to invest in, I've been looking at either a VLS80 or VLS 100 but am not sure which way to go. Assuming they want to use the money when they are 18 rather than leave it invested how should I invest as they have 4 and 6 years respectively so not the long term that would be expected for a pure Stocks and Shares investment?
Also I've read some posts that mention that bonds are not a very good investment in times of low interest rates if this is true what should I use in order to diversify?

Thanks.

xylophone · 10 August 2017 at 3:47PM

Remember that you can have both stocks and shares and cash - you could hedge your bets.

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

Alexland · 12 August 2017 at 7:42AM

4 to 6 years is a fairly short timrframe to be investing and within a couple of years there will only be 2 to 4 years. Maybe a bit more if they stagger the withdrawals over 3 years eg Uni.

VLS80 or VLS100 seem very high risk for your situation but I am also concerned about bond interest rate sensitivity.

Maybe if you want to take on risk for the possibility of return buy both VLS60 and VLS80 to give you portfolio a 'VLS70' weighting? If it goes well for you in the first 2-3 years then I would be tempted to sell and move to a cash JISA to lock in the benefits. If it goes badly hold for as long as possible and try and keep withdrawals to a minimum.

Junior ISA

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