Setting up junior ISA

[Silyas]

Salam
I am an absolute newbie with zero investment/finance experience
Learned loads from videos and info on IFG and chats( a bit overwhelming to be honest )
I am wanting to set up and ISA for my 11 yr old.
From what I have learned from you lovely people, here is the plan
ABell for ISA account and HSBC funds along with MSCI
I have also learnt that small regular investment are better .
I am hoping to put in 9000 which is max ?
How much to put in as a starter amount?

Not sure if I can name people here but brother called (Zeeshan ) is so knowledgable
Would be great full for advise
JazakAllah khairun.

[Zeeshan]

Walikum as salam

Jazakallah for kind words and apologies for the late reply as I was not able to visit the forum regularly.

Below thread should help you but let me knwo if you have any folloup questions.

Halal Children Savings Accounts

Excellent!! regular investment over a long investment horizon is the way to go Point to note: Asset Class: You have a very long investment horizon so should seriously consider investing in Equity fund(s). Wrapper: Investing via Junior ISA will be tax beneficial as your child can have all the gains tax free when he/she reaches 18. The annual allowance is £9,000 for this year. Keep your fees low - Do it for me or Do it yourself ?: There are ready-made portfolios available in the m…

@Silyas

ABell for ISA account and HSBC funds along with MSCI
I have also learnt that small regular investment are better .
I am hoping to put in 9000 which is max ?
How much to put in as a starter amount?

-£9k is the max amount that you can put for the child. It’s usually best to put maximum upfront and regular investment is a good thing in my opinion. with current volatility due to Omricon/US fed policy change, maybe do £3k monthly instalment for this year and £750/month (assuming you want to max £9k every year) from April 2022.

• If you do plan to invest in both funds then make sure that you set up a regular investment by direct debit. MSCI is an ETF and not doing it via regular investing will attract a £9 transaction charge. on this point, I would say to assess the % that you would want to allocate to this fund? if let’s say you are going to put in 90% HSBC and 10% MSCI then based on £750/month, it would be HSBC=£675 and MSCI=£75. The monthly regular charge of £1.5 each fund/etf would therefore turn out to be HSBC = 0.15% and MSCI = 2% - Long story short it may be best to just put everything in HSBC as this is what I have also seen mainstream Junior ISA providers do.

NOTE: Just to let you know that equity is very volatile in nature and for some odd reason market comes down the next day one invest - your time horizon is long so don’t worry if the market comes down the next day - just relax and let it grow. It should catch up and in long run, you should be a winner inshallah.

Hope that helps but let me know if you have any follow up questions.

Good luck
Zeeshan