The Share Centre launches Junior ISA

As we eagerly await the start date of the Junior ISA, Gavin Oldham, chief executive of The Share Centre, gives his thoughts on what this will mean for the financial capability of young people.

"The Junior ISA is due to launch on 1 November and will no doubt flourish despite the lack of Government contribution we saw attributed to the Child Trust Fund (CTF). For those serious about saving for their children, Junior ISAs have an important role in developing financial capability in young people.

"The annual limit is £3,600 per annum and the investments will be locked in until the age of 18. This means those families who can make full use of it may be able to build up funds of £70,000 - £80,000 by the time the young person reaches adulthood.

"As the Junior ISA rolls into adult ISAs at the age of 18, it helps build familiarisation with the benefits of investment and financial house-keeping at a young age, setting them up with financial knowledge for life. It can help young people fund the important milestones in life such as contributing to student fees or a deposit for first-time house buyers.

"With the current uncertainty people may not be aware that the stock market could still provide the best returns when investing for young people. The key is to achieve a good balance of growth and risk.

"The Share Centre will be offering three types of Stocks and Shares Junior ISA. A ready-made Junior ISA catering for those who are unsure where to invest or those who don't want to actively manage their ISA. The Funds Junior ISA is the preferred option for those who wish to invest in funds only (Unit Trusts & OEICs). Lastly, the flexible DIY Junior ISA makes it easy to purchase a wide range of Junior ISA eligible investments, including stocks and shares, funds, investment trusts, gilts, bonds and exchange traded products (ETFs and ETCs)"

For more information about The Share Centre's Junior ISA visit share.com/jisa