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Junior ISA

Discuss Stock buying Shares, tips and ideas for stock market dealing
AsleepInYorkshire
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Junior ISA

#443039

Postby AsleepInYorkshire » September 17th, 2021, 2:47 pm

My 14 year old daughter has £6K in her junior ISA in cash. We are adding £8K pa to that through monthly payments and gifts for birthdays, Christmas and exams. We will add for the next 4 years.

I've a couple of stocks on the radar for her to invest in - but I wonder if anyone has any stocks they think "we" should look at. She knows this is a long term investment and the horizon is 5-10 years.

My radar stocks are Cranswick, Jet2.Com & Gleeson's. The JISA is with AJ Bell and I would like to look at a decent small companies fund if they have one available.

Thank you

AiY

seagles
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Re: Junior ISA

#443047

Postby seagles » September 17th, 2021, 3:06 pm

I set one up for my granddaughter last year. Decided to look at growth ITs. First one was FCIT and then SMT, so far they are doing what I hoped. The difference is you are looking at 4 years, whereas i am looking at 18.

Good luck

dealtn
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Re: Junior ISA

#443048

Postby dealtn » September 17th, 2021, 3:06 pm

AsleepInYorkshire wrote:... but I wonder if anyone has any stocks they think "we" should look at. ...


If I am honest, with a pot that size, and a presumed requirement to have some degree of diversification to mitigate single stock risk (although that would be a good and cheap early lesson in investing too), I can't see an economically efficient way of investing outside of a collective or fund as you suggest.

Sorry that's somewhat boring and not in the spirit of the question, or Board you posed it on.

dealtn
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Re: Junior ISA

#443049

Postby dealtn » September 17th, 2021, 3:07 pm

seagles wrote:I set one up for my granddaughter last year. Decided to look at growth ITs. First one was FCIT and then SMT, so far they are doing what I hoped. The difference is you are looking at 4 years, whereas i am looking at 18.

Good luck


To be fair he said 5-10 years, not 4, as the investment horizon.

AsleepInYorkshire
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Re: Junior ISA

#443051

Postby AsleepInYorkshire » September 17th, 2021, 3:15 pm

dealtn wrote:
AsleepInYorkshire wrote:... but I wonder if anyone has any stocks they think "we" should look at. ...


If I am honest, with a pot that size, and a presumed requirement to have some degree of diversification to mitigate single stock risk (although that would be a good and cheap early lesson in investing too), I can't see an economically efficient way of investing outside of a collective or fund as you suggest.

Sorry that's somewhat boring and not in the spirit of the question, or Board you posed it on.

No need to apologise. I think the dealing costs are £1.50 per trade. I'd have to check as I've ingested way too much information today :lol:

It's a very valid point and one "we" need to consider carefully

AiY

fisher
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Re: Junior ISA

#443059

Postby fisher » September 17th, 2021, 3:40 pm

I invest in an A J Bell JISA for my kids. Amongst other funds we have bought Mercantile IT for them. It is a UK Investment Trust investing in medium and small size companies and has a reasonable track record

https://am.jpmorgan.com/gb/en/asset-management/per/funds/investment-trusts/mercantile-investment-trust/?gclsrc=aw.ds&gclid=CjwKCAjw-ZCKBhBkEiwAM4qfF18ReVB4k_KcLGJz0kLCfsLhUu4FCSXjS0ClpaAadlTaPa7XZbRKqxoC_AUQAvD_BwE

https://www.hl.co.uk/shares/shares-search-results/m/mercantile-investment-trust-ord-2.5p

fisher
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Re: Junior ISA

#443061

Postby fisher » September 17th, 2021, 3:44 pm

AsleepInYorkshire wrote:
dealtn wrote:
AsleepInYorkshire wrote:... but I wonder if anyone has any stocks they think "we" should look at. ...


If I am honest, with a pot that size, and a presumed requirement to have some degree of diversification to mitigate single stock risk (although that would be a good and cheap early lesson in investing too), I can't see an economically efficient way of investing outside of a collective or fund as you suggest.

Sorry that's somewhat boring and not in the spirit of the question, or Board you posed it on.

No need to apologise. I think the dealing costs are £1.50 per trade. I'd have to check as I've ingested way too much information today :lol:

It's a very valid point and one "we" need to consider carefully

AiY


The dealing cost is £1.50 per stock if you use their monthly regular investment service.

dealtn
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Re: Junior ISA

#443065

Postby dealtn » September 17th, 2021, 3:54 pm

fisher wrote:
AsleepInYorkshire wrote:
dealtn wrote:
If I am honest, with a pot that size, and a presumed requirement to have some degree of diversification to mitigate single stock risk (although that would be a good and cheap early lesson in investing too), I can't see an economically efficient way of investing outside of a collective or fund as you suggest.

Sorry that's somewhat boring and not in the spirit of the question, or Board you posed it on.

No need to apologise. I think the dealing costs are £1.50 per trade. I'd have to check as I've ingested way too much information today :lol:

It's a very valid point and one "we" need to consider carefully

AiY


The dealing cost is £1.50 per stock if you use their monthly regular investment service.


Granted that's low (lower than I'd imagined). However £8,000 over 4 years is £167 a month. That's still close to 1% lost in dealing fees. I don't use funds but presumably that's not unusual for them either?

All relatively cheap lessons in the big picture of investing for a teenager. I hope she enjoys the education. Starting early enough to be in a position to "stop" early enough too I hope.

AsleepInYorkshire
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Re: Junior ISA

#443066

Postby AsleepInYorkshire » September 17th, 2021, 4:02 pm

dealtn wrote:
fisher wrote:
AsleepInYorkshire wrote:No need to apologise. I think the dealing costs are £1.50 per trade. I'd have to check as I've ingested way too much information today :lol:

It's a very valid point and one "we" need to consider carefully

AiY


The dealing cost is £1.50 per stock if you use their monthly regular investment service.


Granted that's low (lower than I'd imagined). However £8,000 over 4 years is £167 a month. That's still close to 1% lost in dealing fees. I don't use funds but presumably that's not unusual for them either?

All relatively cheap lessons in the big picture of investing for a teenager. I hope she enjoys the education. Starting early enough to be in a position to "stop" early enough too I hope.

Sorry, sorry, sorry

We're adding 8K per year :)

AiY

Boots
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Re: Junior ISA

#443067

Postby Boots » September 17th, 2021, 4:03 pm

Would it not be useful for the lesson to be "passive investment, asset allocation, low cost"?

Should the answer to the question above be yes, then a selection of ETFs perhaps from:

VUKE, VUSA, VERX, VGOV or INXG

If you want more esoteric:

HPRO or VECP

Or even:

VEMT, SGLP or IPRV

dealtn
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Re: Junior ISA

#443072

Postby dealtn » September 17th, 2021, 4:15 pm

AsleepInYorkshire wrote:Sorry, sorry, sorry

We're adding 8K per year :)

AiY


No apology needed, let alone 3! It was me that made the mistake by misreading.

AsleepInYorkshire
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Re: Junior ISA

#443084

Postby AsleepInYorkshire » September 17th, 2021, 4:46 pm

dealtn wrote:
AsleepInYorkshire wrote:Sorry, sorry, sorry

We're adding 8K per year :)

AiY


No apology needed, let alone 3! It was me that made the mistake by misreading.

I know but I should have made it more concise :roll:

I still think it's a valid point though and "we" do need to consider "costs".

Thank you for your advice. Its free too :)

AiY

seagles
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Re: Junior ISA

#443088

Postby seagles » September 17th, 2021, 4:56 pm

dealtn wrote:
seagles wrote:I set one up for my granddaughter last year. Decided to look at growth ITs. First one was FCIT and then SMT, so far they are doing what I hoped. The difference is you are looking at 4 years, whereas i am looking at 18.

Good luck


To be fair he said 5-10 years, not 4, as the investment horizon.


Sorry I meant paying in, not how long to be left to build. I was considering buying individual shares and then decided I no longer have the "patience" to start building portfolios again and as income us not the driving force, let someone else do the managing.

Urbandreamer
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Re: Junior ISA

#443124

Postby Urbandreamer » September 17th, 2021, 6:59 pm

I set up JISA's for two of my children 3 years ago. My intent was to introduce young adult children to the world of investing.

I picked 2 investment trusts and helped them to select a share. It worked well with my daughter but my son is just looking at stunning growth rather than something that he wants to do.

My choices were City of London trust (CTY) and Scottish Mortgage Trust (SMT). One picked clothes and hence (with my advice) went for Associated British Foods, as in Primark. The other a games company, Frontier Developments (Elite was a thing in my youth and the company was/is doing great). He is very interested in computer games.

CTY was not a wise choice, but an important one. I think that it's very important to pick an investment that will yield enough to cover the fees. Today I would chose Murray International (MYI), but CTY is still serving the purpose for which it was bought in the JISA.
SMT was picked for growth.

Since then changes to my son's account were to trim the holding in SMT and add Foreign & Colonial (FCIT) and Pacific Horizon Trust (PHI).
Like seagles aiming for growth and accepting high volatility. I'm impressed by the XIRR figure achieved.

My daughter's JISA became an ISA, so I don't know all of what she is doing with it. I do know that she trimmed SMT and added International Biotech trust (IBT). She also loves being able to tell people that she owns part of Primark.

All that said, if risk aversion is an issue then there is a lot to be said for trackers or even a equity/bond mix. You did say that it's currently all cash.

Then again you asked about a smaller company fund. I personally have an investment in BMO global smaller companies trust (BGSC).
I recommend the Investment trust handbook (free).
https://harriman-house.com/ithb2021
I also recommend the aic website. You can easily search for investment companies and compare them, Though there are other websites that offer that as well.
https://www.theaic.co.uk/


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