How investment trusts can support Junior ISAs

JISAs

Stephen Peters, investment trust analyst at Charles Stanley, discusses why investors should consider closed-ended funds when opening junior ISAs.

On 1 November, Junior ISAs (JISA) were launched, replacing Child Trust Funds (CTFs). They are somewhat more flexible than CTFs, although disappointingly children such as my own cannot transfer their CTF into a JISA, nor take out a new JISA. From an investment perspective, JISAs are very interesting. As the young person is not able to access the funds for many years, a truly long-term and patient approach to investment can be taken, without having to worry about liquidity needs. Risk can be embraced rather than feared. In a world where the investment horizons for many can be measured in m...