Kate Marshall, lead investment analyst at Hargreaves Lansdown, explores how Junior ISA investing has surged over the past year as families make the most of their allowances to build long-term wealth for their children.
Kate Marshall, lead investment analyst, Hargreaves Lansdown:
“Junior ISA (JISA) investing has surged over the past year, as families increasingly look to make the most of the allowance (currently £9,000) and invest for children’s futures.
The average JISA value on the HL platform now stands at over £8,000, with balances growing by more than 140% over the past 12 months. Both active and passive funds have seen strong inflows, indicating that investors are confident whichever approach they take to building long-term portfolios.
When it comes to where JISA investors are putting their money, global and US-focused funds have been the clear favourites, reflecting a desire for diversified international and US-led growth. UK-focused funds also feature, with investors often favouring home-market familiarity. Meanwhile, interest in Indian funds has been growing, as families look to benefit from the country’s rapid economic expansion.
Nearly half of JISA investors contribute through regular monthly savings rather than one-off lump sums, demonstrating a focus on consistent, long-term investing. This approach helps households smooth out short-term market movements while steadily building up savings for their children over time.
The figures highlight a clear trend: families are prioritising long-term financial planning and using JISAs as a key tool to help children start adulthood with a solid financial foundation.”
3 funds ideas for a JISA
Legal & General Future World ESG Tilted and Optimised Developed Index
Global equity funds provide a good foundation to an investment portfolio focused on long-term growth. Investing in companies across the globe provides a good level of diversification in a single fund. This fund invests in developed markets, such as the US, Japan and Europe, while being mindful of environmental, social and governance (ESG) issues.
The fund aims to track the performance of the Solactive L&G ESG Developed Markets Index. It won’t invest in tobacco companies, pure coal producers, manufacturers of armaments or persistent violators of the UN Global Compact Principles. An index tracker fund is one of the simplest ways to invest, and this one could be a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way.
FSSA Asia Focus
A long-term outlook is essential for investing in Asian and emerging markets, which makes this fund an ideal choice for a JISA. Over the years, rapid industrialisation, growing populations, and a desire to succeed have helped transform countries in the Asia region. Domestic consumption is set to be a key driver of growth over the coming years, helped by a young and growing population, and rising wealth. Continued innovation from companies at the forefront of technology based there could also provide exciting growth opportunities for investors.
This fund is run by a manager and team with a great pedigree of investing in Asia. They have a long track record of picking some of the region’s best-performing companies.
Troy Trojan
Total return funds, like this one, are more conservative than funds that invest fully in company shares. They normally invest in a mix of investments including shares, bonds, commodities and currencies. They provide useful diversification, aim for modest long-term growth, and help shelter your money when stock markets fall, but are unlikely to keep up with stock markets when they rise quickly.
This fund could form the foundation of a broad investment portfolio, has the potential to bring some stability to a more adventurous portfolio, or provide some long-term growth potential to a more conservative portfolio.
Annual performance growth
| 31/10/2020 To 31/10/2021 | 31/10/2021 To 31/10/2022 | 31/10/2022 To 31/10/2023 | 31/10/2023 To 31/10/2024 | 31/10/2024 To 31/10/2025 | |
| L&G Future World ESG Tilted & Optimised Developed Index | 33.39 | -5.16 | 5.65 | 27.34 | 20.22 |
| IA Global | 28.55 | -8.93 | 1.73 | 22.20 | 14.04 |
| FSSA Asia Focus | 15.16 | -15.67 | 1.78 | 13.15 | 16.03 |
| IA Asia Pacific Excluding Japan | 13.30 | -15.80 | 4.47 | 17.34 | 22.91 |
| Troy Trojan | 12.31 | -2.08 | 1.31 | 8.36 | 9.47 |
| UK Retail Price Index | 6.01 | 14.17 | 6.06 | 3.41 | 3.94 |
