Chelsea’s Junior ISA: editor’s pick for Uswitch.com
16 January 2023 – Uswitch.com has named Chelsea’s Junior ISA as an editor’s pick in its latest comparison of the best Junior ISAs*.
The Chelsea FundStore Junior ISA was in the “best junior stocks and shares ISA deal” category and was picked as “One of the best with a low initial and monthly investment requirement and a wide choice of funds”*.
You can read the full article here
Commenting on the endorsement, Sam Holder, operations director at Chelsea Financial Services, said: “It’s great to be recognised as one of the best Junior ISA providers. We are constantly working hard to provide value for money for our customers and increasing their investment choices.”
The Junior ISA is a great way to start saving money for a child’s future. The money is locked away until they turn 18, so the account can be viewed as a long-term saving plan. Anyone can contribute to the Junior ISA for as little as £10 via the Chelsea FundStore and it enjoys the same tax advantages as the adult ISA – no income or capital gains tax is payable.
Junior ISAs can also be rolled into an adult ISA at age 18 and so can continue to grow for many more years.
Three funds to consider for a Junior ISA
As the Junior ISA can be viewed as a long-term savings plan, investors can take a little more risk, investing in emerging markets or smaller companies, for example, in the hope of better long-term rewards. Here are three funds you could consider.
JPM Asia Growth
This is a concentrated, high-conviction fund built off JP Morgan’s extensive research platform. Hong Kong based managers Joanna Kwok and Mark Davids will invest in the shares of up to 60 companies of any size, primarily focusing on quality, growing businesses to generate superior capital gains than their peers and the wider market.
The fund currently has exposure to a number of emerging markets in the Asia region, including 30.5% in China, 17.5% in India and allocations to Indonesia, Thailand, Vietnam, Malaysia and the Philippines**.
IFSL Marlborough Multi-Cap Growth
This fund takes an unconstrained approach, investing in small, medium, and large UK companies. It will be concentrated in around 40-70 names - principally in businesses that are leaders in their sector and that can grow regardless of the prevailing economic landscape.
It invests more in larger companies than most other Marlborough funds, but this is a deliberate move in order to pick up on the growth opportunities across the whole market spectrum. The manager’s macroeconomic overlay helps to add context.
Rathbone Global Opportunities
This fund is a perennial favourite among Chelsea customer base. It is a global growth fund looking to buy innovative companies that have flown under the radar of the main market. Manager, James Thomson, aims to identify global themes and invest in them early.
Top ten holdings currently include Costco, Hermes International, Linde and Deere & Co**. Almost two-thirds of the portfolio (62.84%) is invested in US listed companies, 26.05% in European companies, and the remainder in the UK**.
You can research more options on the Chelsea Selection here.
*Source: Uswitch.com, 16 January 2023
**Source: fund factsheet, 30 November 2022
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views expressed are those of the author and do not constitute financial advice.