You are here: Home - Investing - Experienced Investor - News -

Moneyfarm launches Junior ISA

Written by:
Digital wealth manager Moneyfarm has launched a Junior ISA, allowing parents to invest up to £9,000 each year for their child’s future.

The junior stocks and shares ISA mirrors the ISA product for adults and offers seven ETF (Exchange Traded Funds) portfolios with a different risk profile ranging from low to high.

The ready-made portfolios are actively managed by Moneyfarm. The JISA can be opened with a minimum £500 contribution, and can be topped up with a minimum £10 a month contribution.

There’s a tiered management fee structure:

  • 0.75% on the first £10,000
  • 0.6% on the next £10,000 – £50,000
  • 0.5% on the next £50,000 – £100,000
  • 0.35% on anything above £100,000.

Moneyfarm also charges an underlying fund fee of 0.2% nd there is an estimated bid-ask spread cost of around 0.10%.

Parents can also select the portfolio to be socially responsible with its ESG offering, backed by MSCI data.

Chris Rudden, investment consultant at Moneyfarm, said: “A Junior ISA is the perfect way to give your child a head start in life whilst ensuring returns are protected from rising inflation levels, as well as from capital gains and income tax. And, if you can start early, the power of compounding and good time in the market can really boost those returns.

 “The Moneyfarm JISAs are built and managed in the same way that we manage our adult ISAs. We have a focus on diversification and long-term financial goals. All of our portfolios have been created with a low, tiered management fee of between 0.35% and 0.75% that covers the ongoing portfolio screening, active management of the portfolios and access to a dedicated investment consultant. The Moneyfarm Asset Allocation Team, which is headed by Chief Investment Officer, Richard Flax, a 25-year industry veteran, has proven to be able to actively manage rigorously in all market environments, so our clients can be safe in the knowledge that their child’s money is being looked after.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week