ii data reveals more bullish buy/sell ratios with JISA accounts

by Jemma Jackson from interactive investor |

Our experts explain the buy/sell ratio on Junior ISAs and top 10 most-bought investments since lockdown.

-    Talking to children about money can be just as valuable as investing – so get involved and enter the interactive investor Family Financial Education awards

-    Parents, pupils and teachers can also get behind the Personal Finance Teacher of the Year Award

A lot has been said about investor trends during the Covid-19 UK lockdown, but how have parents managed Junior ISA (JISA) investments amid the storm compared to adult ISAs? 

When it comes to buy/sell ratios, JISA accounts on interactive investor have seen more bullish behaviour it seems between 23 March 2020, the day when Prime Minister Boris Johnson first announced lockdown measures, and 19 May 2020. 

When it comes to trades, the average ‘buy’ on Junior ISAs has accounted for 80% (20% sells) compared to a 69% buy average for ISAs (31% sells). See table below for average top 10 selections in ISAs and Junior ISAs.

Moira O’Neill, Head of Personal Finance at interactive investor, says: “Buy to sell ratios have been heavily weighted towards buys throughout the coronavirus pandemic, but even more so for Junior ISAs. The very long-time horizon involved when it comes to investing for children may well mean that parents are more inclined to take the plunge. 

“Investment trusts and funds are dominating the average JISA top 10 and parents are clearly being cost conscious, with many choosing passives. The fact our Junior ISAs come free with adult accounts also makes them very cost competitive.

“With many parents actively involved in home learning (and also actively topping up JISAs), it’s a good opportunity to talk to kids about money and investing. Teaching children about money can be every bit as valuable as investing for them – and arguably more so. Talking kids through the investing process; and engaging them with their JISAs – is a good place to start.

“But whether you are investing for children or not, we’d love to see more entries to our Family Financial Education initiative, with cash prizes for families up for grabs who have best taught their kids about money. Whether you’ve been talking about investing, adding up the family grocery bills, or running a home school tuck shop, for example, we’d love to hear from you.”

interactive investor Family Financial Education Award

With parents and carers now having to take a lead in educating their children, interactive investor has launched a Family Financial Education Award, with a prize pot of up to £5,000 for parents and carers who have best educated their children about money matters.

There are £250 individual cash prizes available for up to 20 households – families need to send examples of their financial education home learning to editorial@ii.co.uk

Moneywise Personal Finance teacher of the Year Award

There is also still time to nominate a teacher (or nominate yourself if you are a teacher) for the Personal Finance Teacher of the Year Award. The prize pot is £24,000, and last year there were prizes for primary and secondary schools, and a separate ‘judges award'.

For the chance to win cash for your school email editor@moneywise.co.uk to nominate a teacher. 

Teachers can nominate themselves by emailing editor@moneywise.co.uk

JISAs versus ISAs – average top 10

The average top 10 most-bought investments in JISA since lockdown comprises of industry stalwarts, with Fundsmith Equity at the top, Scottish Mortgage (LSE:SMT) in second, Lloyds Banking Group (LSE:LLOY) in third. However, biotech firm Avacta (LSE:AVCT), in ninth position, makes the cut as investors seemingly seek to profit from the race to find a Covid-19 vaccine.

In contrast, the top 10 most-bought investment among ISA customers is entirely made up of shares. The usual suspects top the table with Lloyds Banking Group, Royal Dutch Shell (LSE:RDSB) and BP (LSE:BP.) forming the top three, but three biotech companies also make the cut – of which Novacyt (LSE:NCYT) ranks highest in seventh ahead of Avacta and Omega Diagnostics (LSE:ODX) in ninth and 10th positions respectively.

Top 10 most-bought investments in Junior ISAs and ISAs on the interactive investor platform from 23 March to 19 May 2020

   Junior ISA       ISA   
   Fundsmith Equity    Lloyds Banking Group
   Scottish Mortgage    Royal Dutch Shell
   Lloyds Banking   Group       BP   
   BP       Barclays      
   Vanguard LifeStrategy 80% Equity       Aviva   
   Barclays    International Airlines Group
   iShares Core   FTSE 100 UCITS ETF       Novacyt   
   Vanguard LifeStrategy   100% Equity    Legal & General
   Avacta   Group    Avacta Group
   Aviva    Omega Diagnostics

Myron Jobson, Personal Finance Campaigner at ii, says: “For the most part, it is the parents/ legal carers who make investment decisions for JISAs, and they appear to have stuck with what they know during the lockdown, with Fundsmith Equity, Scottish Mortgage investment trust and Lloyds Banking Group in a familiar position at the top of the bestsellers table. Vanguard is also strongly represented. Avacta which has experienced a surge in popularity during the pandemic as the race to find a cure or an effective treatment against Covid-19 continues, also make the cut. These are certainly racier stocks, but Junior ISAs have by definition a longer investing timeframe and would therefore normally be able to carry more risk.

“With many people working from home during the lockdown, some may have found time to have a look at their own investment portfolio, and while investment is a long-term game, it is good practice to review your JISA portfolio to ensure that it is still fit for purpose. With many people working from home during the lockdown, some may have found time to do exactly this. It might also be worth involving your child in the process can help engage your child’s interest as the savings will ultimately be handed to them once they turn 18.”

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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