We all want the best for our kids. Many HL clients certainly do – parents trust HL with over £2bn of their children’s investments and over 200,000 kids have an HL Junior ISA.
But where do parents invest their children’s Junior ISAs and why?
To find out, we spoke to some of our HL colleagues about the investment decisions they’re making for their kids.
It’s always interesting to see what others are getting up to. But please don’t consider these as investment ideas, or personal recommendations. None of this is personal advice.
Investing for at least five years increases your chances of positive returns, but all investments can rise and fall in value, so your child could get back less than you invest. If you’re not sure what’s right for you or your child, ask for financial advice.
These HL colleagues aren’t investment experts and don’t work in our professional research teams.
No account charges or online dealing commission. Other charges may apply depending on investments chosen.
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Ryan Kenny, Retirement and Advice Manager
HL Marketing team
"I have a Junior ISA for my daughter.
We save into it each month with a Direct Debit, as does her great grandad. Although it’s a small amount, with nearly an 18-year time horizon, I know it has the potential to grow into a good nest egg for her.
She has enough toys and books that have been passed to us from friends and relatives, so I often ask for birthday donations to her Junior ISA instead. As she has plenty of time to ride the ups and downs of investing, I’ve chosen a global equity fund which is very growth focused.
When she turns 18, the choice will be hers about what to do with it. But I’m hoping she’ll continue investing and eventually use it for something sensible, like a deposit for a first flat, or towards higher education costs – if that’s the path she wants to take."
Sam Watson, Digital Product Manager
HL Product team
“The path my partner and I have chosen is little and often, with the occasional lump sum added at Christmas and birthdays by ourselves, as well as family members.
This allows us to take advantage of their young age and reap the benefits of compounding.
We can choose the monthly amount which fits within our own financial commitments, then allow time to take its course.
The two funds we have chosen to invest in monthly are the Fidelity Index World fund and the abrdn Global Smaller Companies fund. Both have served me well with achieving my own goal of purchasing my own home, so carrying these across to my kids’ investments felt the right thing to do.
We’ve recently started to engage our kids with what their investments are and how they will benefit them when they reach adulthood. After overcoming the initial ‘Dad, this is boring, why are you showing me this’, I have been asked a few times to show them how their accounts are doing.
Cue my face lighting up when I get out the HL app and start to show them how it all works. It still pales in significance to being asked if they can play on the PlayStation, but I’ll take the win and hope this is the early shoots of their interest in investing.”
Malcolm Peacock
Head of ISA & Fund and Share Accounts, HL Proposition team
“I opened a Junior ISA for my daughter Rosie while sat on a bench in the park when she was two days old. It was so easy, I managed to do it on my phone in the five minutes she was asleep in her pram.
My wife and I wanted to give Rosie a head-start and the freedom to do things she’ll want to do when she turns 18, like travel the world, or buy a house. It’s also a great way to get grandparents involved with saving for her, too!
We’re mainly investing monthly from our joint account into one of HL’s Ready-Made Funds – HL Multi-Index Adventurous – trying to get enough growth to outpace inflation and give her money the best chance to grow over time. But every now and then we’ll drop in a lump sum as part of a birthday or Christmas present.
So far, we’re doing pretty well with it, and Rosie actually has more money than I do right now! We mostly keep track of everything through linked accounts on the app, but it’s more a case of monitoring than taking any action.”
How to pick investments for a Junior ISA
If you’re looking for inspiration from our investment research team on where to invest your child’s Junior ISA this tax year, explore our latest Junior ISA investment ideas.
Or, you can use our Wealth Shortlist.
It’s designed to help investors build and maintain a well-balanced and diversified portfolio.
Investing in funds won’t be right for everyone, though. Only invest in a fund if its objectives align with your own, and there’s a specific need for that type of investment within your portfolio. Investors should understand the specific risks of a fund before they invest and be investing for the long-term (five years or more).
It’s also important not to put all your eggs in one basket. Spreading your money and diversifying, gives you access to more opportunities and can reduce risk.
Leave day-to-day investment decisions to the experts
If you want a team of experts to look after the day-to-day investment decisions, consider a Ready-Made Investment for a Junior ISA.
You can pick one fund from our range of ready-made investments, which let you choose how to balance risk and potential returns.
All you’ll need to do is check in on your investment from time to time to make sure it still meets your child’s needs and objectives.
HL Ready-Made Investments are managed by Hargreaves Lansdown Fund Managers Ltd., part of the Hargreaves Lansdown Group.