Junior ISAs face setbacks
According to research by investment firm JP Morgan Asset Management, 36 percent of parents with offspring under the age of 18 are likely to take out a Junior ISA following their launch on 1st November.
However, while Junior ISAs offer family and friends the chance to invest up to £3,600 tax free each year in cash or stocks and shares for the child’s future, those looking to start saving straight away will find it very few products on offer at the High Street banks.
Junior ISAs have, nevertheless, proved popular with investment companies. This leaves parents with the difficult choice of waiting for the High Street institutions to catch up – while missing out on valuable income – or to take out a stocks and shares product.
While stocks and shares Junior ISAs are likely to perform better than the cash version, according to the Association of Investment Companies, almost half of parents want to opt for the latter product.
