Thinking about investing for your child’s future?

Investing for your child’s future as early as possible is a great way of saving each year to build a sizeable amount in the long term, perhaps for further education or towards their first property purchase. 

The Junior ISA (JISA) is a tax efficient way for parents and grandparents to save on behalf of children to give them a financial head-start as they move into adulthood. 

When investing in a JISA, parents can choose between a “Cash” or “Stocks & Shares” ISA. Cash ISA’s have tended to be the ‘go-to’ option historically, however with prolonged low interest rates making this route less appealing, investing in the stock market could be a suitable alternative, particularly given the long-time horizon for younger investors.

A stocks & shares JISA provides access to a wide range of investment options and can even accept the transfer in of any existing cash JISA money and Child Trust Funds (CTF). 

In addition, parents and grandparents can now invest up to £9,000 per year into a JISA, providing a great way to save for your children/grandchildren’s future, plus contributions can count towards your inheritance tax gifting exemptions.

The JISA wrapper is held in the name of the child, although the application must be made by an individual over the age of 16, who is either the eligible child, or someone who has parental responsibility for the child. At age 18, the JISA can be accessed or can continue to be invested in a standard ISA.   

Managed Portfolio Service (MPS)

Having some savings from a young age in an investment vehicle, such as the JISA encourages good savings habits for the long term and therefore makes it more likely that your child will continue to save for themselves beyond age 18.

Cave & Sons now offer an MPS portfolio fund range which includes access to six of Cave’s core investment strategies via a portfolio of collective investments. Each strategy is actively managed and combines different asset types, including equities and bonds. They are risked mapped, and each designed to deliver a different investment objective.

Our aim is to provide access to a straightforward, cost effective way of benefiting from our in-house investment expertise, by offering an investment solution for those clients who do not require a bespoke portfolio.

You can access our MPS through various investment wrappers including a stocks & shares JISA. 

Should you wish to seek financial advice about investing for your child’s future or would like a full financial review, please do not hesitate to get in touch.

Cave & Sons Ltd is authorised and regulated by the Financial Conduct Authority (FCA),  Financial Services Register number 143715.

This communication is for general information only and is not intended to be individual investment advice or tax advice. The views expressed in this article are those of Cave & Sons and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. You are recommended to seek professional regulated advice before taking any action.

Key Risks: Past performance is not a guide to future performance. The value of an investment and the income generated from it can go down as well as up, and is not guaranteed, therefore you may not get back the amount originally invested. Investment markets and conditions can change rapidly.