Legal & General Investments launches Junior ISA
Legal & General Investments has announced the details of its stocks and shares Junior ISA.
There are three options for parents to choose from when saving for a child, spanning the range in risk appetite to meet different investors' needs:
Responds to the markets (Legal & General Multi Manager Balanced Trust)
Follows the UK market (Legal & General UK Index Trust)
Pick your own (access to one or more funds from Legal & General's range of over 30)
This range allows access to a multi manager fund as the lower risk investment, through to pick your own as the higher risk option, allowing investment into any of Legal & General's unit trusts directly available to retail investors.
This launch follows research* which reveals that more than a quarter (27%) of parents think that they will never stop financially supporting their children. More than half (52%) of parents expect to help fund university costs after their children turn 18, while four in ten (42%) expect to fund the purchase of their first car.
Simon Ellis, Managing Director of Legal & General Investments, said: "Saving for a child's future gives them a fantastic start in life, ensuring that when they reach 18, they have a lump sum to help pay for education, driving lessons or just to leave it invested.
"We have selected a range of options that we think best fit people's investment needs and risk appetite. Investing in the stock market should be seen as a long-term process, so by starting at birth, the Junior ISA has the chance to deliver growth over 18 years, riding out any short term market volatility."
Complementing Child Trust Funds, a maximum of currently £3,600 can be invested into a Junior ISA every year, efficiently/free from personal income or capital gains tax, and is locked away until the child reaches 18. Any Junior ISAs opened with Legal & General Investments will be automatically rolled into an adult stocks and shares ISA, at which point the account holder will be able to access the funds should they wish.
Once set up, friends and family can also contribute to the Junior ISA with the initial minimum investment for a regular direct debit set at £30 a month, with a £500 minimum for lump sums. If someone is already making regular contributions, or has deposited a £500 lump sum, they can then top-up with a minimum of £100, or increase their direct debits by any amount.
The Junior ISA is now open for investment at legalandgeneral.com/investments/isas/junior-isa