Golden Tips for investing in a Stocks and Shares Junior ISA
Saving a lump-sum amount of money for your child’s future may not be the best way of investing when taking into account the growing inflation rate in the UK. The current rate of inflation means that in ten years time your child may have to pay £7 for a simple birthday card which at the moment would cost £3.
Whilst inflation grows, rates of interest have been decreasing each month in the UK. Is now the best time for saving? Making investments for your child is another option to consider and we have collected some useful tips that should help you to decide the best way to invest.
- Think about whether you are in a position to put money away with some risk for your child over a period of five years. Are you prepared to see the value of your investment drop over time? Investing in stocks and shares is only suitable for those willing to take the risk.
- Be sure to pay in the total amount available in your account. A Stocks and Shares Junior ISA is the most tax-efficient way to invest in your child’s future. It means that your child will not be paying unnecessary amounts of tax.
- Consider whom it is that you want to manage for your investments. You could manage your investments yourself, or use a fund manager. If you choose to use a fund manager, you may be asked to make a minimum investment in a Stocks and Shares Junior ISA. The best thing you can do is make sure that you understand them!
- Be sure to have a balanced portfolio within your Stocks and Shares Junior ISA, it spreads the risk out! You should also think about shopping around for the best available deal. Some fund managers may charge you a fortune for their management fee!
The structure of the investment market is not too difficult to comprehend. You can even use our Knowledge Hub to learn everything you need to know about saving and Investing for your Child. If the idea of an investment portfolio management leaves you feeling confused and you would like to get your attitude towards risk assessed, then you are welcome to post your questions in our Ask the Expert section. You can also discuss the issues with Mr. Steve Weisner, an independent financial advisor. His details can be found on Ask the Expert page.
Since the launch of Junior ISAs in November 2011, there have been many fund managers offering a Stocks and Shares Junior ISA so you may find it difficult to decide which is best suited for you. If this is the case, then don’t worry! Our financial expert team has developed a comparison table specifically for Stocks and Shares Junior ISA, which will be an indispensible tool to help guide you through the financial maze. Make sure you keep coming back to check it out!
You can also join our prize draw by filling in the form below. We will be keeping you up-to-date on the developments of such a fantastic savings account for your child as well as selecting ten lucky children to receive a £50 contribution to their Stocks and Shares Junior ISA from us!
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