Best Junior ISA Funds: Our Top Picks 2020/21
Whether you are a parent, grandparent or guardian of a child, you will want the absolute best for the little one you care for. Taking out a Junior ISA account for them is a fantastic way to set them up for some financial security – especially within the tax-free ISA wrapper. But which are the best funds for this year? We’ve put together our top five picks for you to choose from.
Choosing to open a Junior ISA for your child is a great way to invest in their future in a tax-efficient way. Junior ISAs can set children up for the start of life: they can help your kids with the deposit for their first home, with learning to drive, with university or college costs – the list goes on and on.
With JISAs, you’re likely to be putting money away for a longer period of time. In that case, you will get better returns and better results from choosing a Stocks and Shares JISA. You should aim to invest for at least five years, as this gives time to account for the normal fluctuations in the market.
Like any other investment, choosing the right account for you, and for your child, is important. To help you make your choice we have put together a list of our top five picks for Junior ISA Funds.
This is a low cost equity investment trust which invests worldwide with a curated selection of stocks including Tesla, Amazon and Netflix which makes up over 20% of the fund holding, chosen for their strong growth prospects. You can invest from as little as £50 per month. This fund is actively managed, and aims to maximise the returns gained in the long term. The fund has a very respectable ongoing charge of 0.36% pa.
2. L&G Global Technology Index
The Legal and General FTSE Global Technology Index Fund ISA is a great low-cost fund which allows you to invest in global companies which are engaged with information technology activities. This technology tracker fund invests in companies such as Apple, Microsoft and Google which currently makes up over 30% of the fund holding. The minimum you can invest as a lump sum is £100, but you do have the option of investing from £20 per month. The fund has a very respectable ongoing charge of 0.32% pa.
3. iShares FTSE 100 UCITS ETF
This ETF tracker fund enables you to invest in FTSE 100 companies via the index of the largest companies listed on the London Stock Exchange including Astrazeneca, Glaxosmithkline and HSBC. This fund has a proven record of tracking stocks with a very high degree of accuracy and gives investors exposure to FTSE 100 companies. You can invest in this stock from £50 per month. This fund has a super low ongoing charge of 0.07% pa.
4. Fidelity World Index
This fund is a low cost and straightforward way for someone to start investing into a fund. There is a very low charge management cost of 0.1% per year. The fund tracks the performance of the MSCI World Index (before the fees and expenses are applies) and by doing this, they will aim to make good returns on this basis. They invest in many well known companies you might recognise – including Coca-Cola, Google, Disney and Microsoft. The fund has a very low ongoing charge of 0.12% pa.
This is a popular fund which invests in typically 20 to 30 stocks, including high quality businesses which can sustain giving high returns on capital including Microsoft, Paypal and Facebook. It has grown approximately £20 bn since it launched in 2010. You can begin investing with a minimum of a £1000 lump sum or £50 per month. The funds has an ongoing charge of 0.95% pa.