Interactive Investor

Parents more likely to invest with a Junior Isa than their own, research shows

27th May 2020 18:31

Stephen Little from interactive investor


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The figures suggest parents are much more likely to take the plunge than sell compared to Isas

Parents and grandparents have been more willing to invest in Junior Isas (Jisas) than their own Isas since the lockdown began, new data reveals.

Investment platform Interactive Investor (Moneywise’s parent company) says that when it comes to trades, the average ‘buy’ on Junior Isa has accounted for 80% (20% sells) compared to a 69% buy average for Isas (31% sells).

Moira O’Neill, head of personal finance, Interactive Investor, says: “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.”

With a Jisa you can save and invest on behalf of a child under 18. In the current tax year for 2020/21 the savings limit for a Jisa is £9,000.

The total amount you can save in an adult Isa during the current tax year is £20,000.

The most popular Jisa investment on the Interactive Investor platform during lockdown was the Fundsmith Equity fund, while for adult Isas it was Lloyds Banking Group.

O’Neill says: “Investment trusts and funds are dominating the average Jisa top 10 and parents are clearly being cost conscious, with many choosing passives."

Top 10 most bought investments in Junior ISAs and ISAs on Interactive Investor from 23 March 2020 to 19 May 2020


Junior Isa



Fundsmith Equity

Lloyds Banking Group


Scottish Mortgage

Royal Dutch Shell


Lloyds Banking Group






Vanguard LifeStrategy 80% Equity




International Airlines Group


iShares Core FTSE 100 UCITS ETF



Vanguard LifeStrategy 100% Equity

Legal & General


Avacta Group

Avacta Group



Omega Diagnostics

Source: Interactive Investor, May 2020

Stocks and Shares Isas

While a Cash Isa is a tax-free savings account, with a Stocks and Shares Isa you can hold a variety of investments such as shares and funds.

If you want to open Stocks and Shares Isa you can get a fund manager or an independent financial adviser to manage it on your behalf.

Alternatively, if you want to select and manage your own investments you can do it on your own though an investment platform, although this option is best for those that know what they are doing.

Stocks and Shares Isas provide an option for people looking to avoid the erosive impact of inflation on returns.

Over time there is the potential for better returns with an investment Isa over cash, although the risks are also greater.

If you want to invest in a stocks and shares Isa you need to be comfortable with the possibility of making losses and prepared to invest for at least five years.

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 Moneywise Personal Finance Teacher of the Year Award. The prize pot is £24,000, and last year there were prizes for primary and secondary schools.

Nominations made on behalf of someone else should be emailed to before 17:00 on 1 September 2020. Moneywise will then contact the nominated teacher for a supporting statement and lesson plan.

Teachers can also nominate themselves by sending at least one lesson plan for a personal finance lesson and a supporting statement to before 17.00 on 1 September 2020, along with their name, the name and address of the school and their email address and telephone number.

The first 250 teachers who submit an entry for themselves will each receive a £50 Amazon voucher.

Only one entry may be submitted by any person.

Winners will be announced in October 2020.

This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.

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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