Best investment Junior Isa 2014

Published by Rachel Lacey on 27 December 2013.
Last updated on 27 December 2013

Cash is a great way of saving for an Xbox 360 or holiday spending money, but if you've got bigger targets in mind such as university fees or help buying a first home, then you are more likely to achieve those goals with equity-based investments.

While there will invariably be some risk, over a period of 10 years or more an investment in stocks and shares should give you higher returns and you have time to ride out a few stockmarket wobbles along the way.

Figures from the Association of Investment Companies (AIC) show that £30 invested monthly in the typical investment trust would be worth £15,989.84 (less charges) after 18 years - the same sum invested in a market-leading cash Isa paying 3.25% would be worth just £8,749, according to the Money Advice Service.

Many investment trust companies now run Junior Isas, which provide access to a range of investment trusts and in some cases unit trusts, too - offering a cost-effective way of investing and tax-free growth. Moreover, you can pay in occasional lump sums or make regular monthly investments.

In this category - which was selected by a team of investment trust specialists - we asked our judges to focus not just on the quality of investments offered but also charges and minimum investments levels to ensure our winner was affordable.

The judges' favourite this year was once again the JPMorgan Junior Isa. It offers access to a huge variety of managed funds and investment trusts (from a variety of management companies), as well as company shares.

Judge Gavin Haynes, managing director of Whitechurch Securities, says: "This is an excellent choice for building up a stocks and shares junior Isa, with a wide choice of investments available. You can invest £50 a month or a £100 lump sum and you pay no annual account fees. You can also monitor your child's investments online through an easy-to-navigate website."

The runner-up was Alliance Trust. Judge Tim Cockerill, head of collectives research at Rowan Dartington, says: "Alliance offers by far the best range of investment trusts to invest in, which makes them ideal for those investors who want to be more active in managing their accounts."


Best investment junior Isa 2014

Choice of funds: Wide variety of funds and trusts, externally and internally managed plus individual shares
Minimum investment: £50 a month or £100 lump sum
Contact: 0800 731 1111


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