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18th
Aug 2020
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Best Junior ISA Funds: Our Top Picks 2020/21

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. 

1. Baillie Gifford Scottish Mortgage Investment Trust

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.

You can access this fund via a junior ISA using fund platforms Interactive Investor and Hargreaves Lansdown

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.

You can access this fund via a junior ISA using fund platforms Hargreaves Lansdown and Interactive Investor

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.

You can access this fund via a junior ISA using fund platforms Fidelity and Hargreaves Lansdown

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.

You can access this fund via a junior ISA using fund platforms Fidelity and Interactive Investor

5. Fundsmith Equity

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.

You can access this fund via a junior ISA using fund platforms Hargreaves Lansdown and Fidelity

Read more about Junior ISAs

Selected ISAs

Scottish Investment Trust

from Baillie Gifford

ISA Option
Allows ISA Transfers
Regular Savings
Interest Rate (AER) 0.40%
  • Fund Choice: Scottish Mortgage is a low-cost equity fund which invests on a global basis. Stocks are carefully selected for their strong growth prospects.
  • Invest From: £50 pm
  • Investment Options: Scottish Mortgage is an actively managed, low-cost investment trust, investing in a high conviction global portfolio of companies with the aim of maximising its total return over the long term.

About this fund: Scottish Mortgage is a low-cost equity fund which invests on a global basis. Stocks are carefully selected for their strong growth prospects. The trust aims to outperform world stock market indices over a five year rolling period.

The trust has a long term investment horizon and invests with real patience. The portfolio is driven by corporate attraction rather than index construction. The managers see themselves as owners of companies rather than renters of stocks.

The resolutely global approach taken by the trust is reflected in the current investment themes such as the speed of technological advances and how they can disrupt established business practices, and the re-emergence of China as an economic superpower.

As at 31 July 2020, Scottish Mortgage had total net assets of £13.4 billion, making it one of the UK's largest investment trusts.

*Dividend yield as at 31/7/2020

This fund is available via: Hargreaves Lansdown investment platform

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

FTSE Global Technology Index Fund ISA

from Legal & General

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE World Technology Index
  • Invest From: £20 pm
  • Investment Options: Invests in the shares of global companies engaged in information technology activities e.g. Microsoft and Apple, as represented by the Index.

Why we like it: A low cost way of investing in shares of global companies engaged in information technology activities, as represented by the FTSE World Technology Index. You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online. 

This fund is available via Hargreaves Lansdown

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

FTSE 100 UCITS ETF Tracker

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 100 Index
  • Invest From: £50 pm
  • Investment Options: Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange at a highly competitive price.

A super low cost FTSE 100 tracker ETF fund with a 0.07% pa annual charge. 

The product has a record of tracking its benchmark to a high degree of accuracy and scored ahead of rivals on this measure. Income generated is reinvested.

The investment objective of the Fund is to deliver the net total return performance of the Benchmark Index (being the FTSE 100 Index), less the fees and expenses of the Fund. In order to achieve this investment objective, the investment policy of the Fund is to invest in a portfolio of equity securities that as far as possible and practicable consists of the component securities of the FTSE 100 Index, this Fund’s Benchmark Index. 

Available via:

Fidelity investment platform »

Special offer:

Invest and get £25 cashback »

Build your savings with an ISA, SIPP or Investment Account and receive £25. Exclusions, T&Cs apply.

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Index World

from Fidelity

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks MSCI World Index
  • Invest From: £50 pm
  • Investment Options: The Fidelity Index World Fund, invested in a variety of well-known companies such as Coca-Cola, Google, Disney & Microsoft

Super low annual management charge of 0.1%. Great way to spread risk across a wide range of shares.

The Fund aims to track the performance of the MSCI World (Net Total Return) Index (before fees and expenses are applied) thereby seeking to increase the value of your investment over a period of 5 years or more. The performance of the Fund is unlikely to track the performance of the index precisely. 

Available via:

Fidelity investment platform »

Special offer:

Invest and get £25 cashback » 

Build your savings with an ISA, SIPP or Investment Account and receive £25. Exclusions,  T&Cs apply.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Investment Fund ISAs

Equity

from Fundsmith

Income Yield 1.63% pa - Income Paid Bi-annually*

Why we like it: Suitable for the long term investor the fund manager Terry Smith focuses on a small number of high quality, resilient, global growth companies (Between 20 and 30 stocks)  that are good value with the intention of holding the shares for a long time. Companies held include Microsoft, Paypal and Estee Lauder. This fund is available through the Fidelity Platform.

*Historic yield as at 30 April 2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

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Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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