The top 10 Junior ISA funds have been released by Fidelity as the Junior ISA celebrates its one year anniversary since first launching.
Data from Fidelity highlights the following best-selling Junior ISA funds:
Fidelity MoneyBuilder UK Index Fund
Fidelity Multi Asset Strategic Fund
Invesco Perpetual High Income Fund
Fidelity MoneyBuilder Asset Allocator Fund
Aberdeen Emerging Markets Fund
Fidelity South East Asia Fund
Jupiter Merlin Balanced Portfolio
Fidelity ISA Cash Park
Fidelity MoneyBuilder Cash ISA Fund
M&G Global Dividend Fund
Tom Stevenson, Investment Director, Fidelity Worldwide Investment: “The most popular investment funds during the first year of the Junior ISA show how cost conscious parents and grandparents saving into this new wrapper are. The ten most popular funds contain three from Fidelity’s MoneyBuilder range with the MoneyBuilder Index tracker fund topping the table. Index-tracking funds have a place in a long-term investor’s portfolio, especially when they are trying to gain exposure to well-researched markets such as the US or UK, but it is really important that if savers adopt a passive approach in this way that they do it with a low-cost fund like MoneyBuilder Index.
“The inclusion of three multi-asset funds shows some Junior ISA investors sensibly leaving asset allocation and the ongoing monitoring of markets to investment experts. The inclusion of a corporate bond fund and a cash fund in the top ten suggests parents have a lower tolerance to volatility than I would have expected even when they are saving for the long term via a Junior ISA. Wherever parents and children decide to invest they are right to do it within the shelter of a Junior ISA. Young people have the greatest opportunity to benefit from the long-term performance of stock markets and doing so in a tax-efficient way stacks the odds in favour of a good outcome. As children grow up in a world in which they can expect to live longer than previous generations and in which employers and governments are increasingly putting the onus on them to prepare for their own financial security, they need all the help we can give them to get into the savings habit at an early age.”
