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Investing in a Junior ISA is possibly one of the most effective ways for you – and others – to save for your child’s future


To get the most out of a Junior ISA (JISA), it’s best to start early and save on a regular basis. Not only will this help increase the value of your nest egg, it can also encourage good investment habits for both you and your child.

Here are five good reasons to invest in a JISA. They are:


  • Tax-efficient: A JISA – like a standard ISA – is effectively a tax-efficient wrapper allowing you to invest up to £9,000 in 2020-21, either in cash or stocks and shares. This allowance is on top of your regular ISA-savings allowance (£20,000). Remember, there is no capital gains tax (CGT) to pay on investment gains, and investment within this wrapper can grow in a tax-efficient environment.


  • Long-term: Money invested in a JISA is locked away until a child’s 18th birthday, so these are ideal longer-term investment plans. If you start saving when your child is young you’re looking at a 15-year-plus horizon. This means you could think about a more adventurous strategy, for example putting money into investment trusts that have exposure to emerging markets. These may be more volatile over shorter time frames but have the potential to deliver higher returns over the longer term.


  • Cumulative: You don’t need to have a large lump sum or be especially wealthy to open a JISA. Most providers offer regular investment plans that can be opened from as little as £25 per month. Even relatively small amounts can build to a sizeable sum over long periods, particularly when compound returns are taken into account – in other words, getting returns on your investment returns.  Regular savings plans also help smooth out stock-market movements; ideal for those investing in more adventurous sectors


  • Collaborative: Parents are not the only ones who can save into a JISA. Grandparents, godparents and family friends can all contribute, provided the total invested does not exceed £9,000 in the 2020-21 tax year. These contributions do not affect the donor’s own ISA allowance.


  • Educational: Investing in a JISA can help you demonstrate good savings habits and highlight the growth potential of equities to your child. The rewards of this may last even longer than the JISA plan itself.


J.P. Morgan Asset Management offers a variety of investment trusts suitable for Junior ISA investment. This includes our multi asset trust, JPMorgan Elect Managed Growth as well as more adventurous options, investing in a range of global markets. The JPMorgan Emerging Markets Investment Trust for example, may be an option for parents with a longer-time investment horizon.



Full risk profiles for individual trusts can be found at



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