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Moneyfarm launches Junior ISA

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22/02/2022
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.”

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