Junior SIPP investment ideas
Investing for a child
Gifting money to a child's SIPP is a smart way to boost the financial prospects of a child in later life. With a Junior SIPP, you control where it’s invested and can choose from a wide range of funds to match your values and goals, as well as UK and overseas shares, investment trusts and more. We’re here to provide you with guidance and research to help you get started with investing and make well-informed investment decisions.
Latest fund ideas for a Junior SIPP
You don’t need to be an expert stock picker to get started with investing. You can leave the day-to-day managing of investments to an expert by choosing funds.
We’ve highlighted funds that we think offer excellent long-term potential and could be worth keeping an eye on. You should only invest if the fund’s objectives match your own. Make sure each investment you make serves a specific purpose in the portfolio, like investing in a new area to increase diversification.
Remember, investing in these funds won’t be right for everyone and these investment ideas aren’t personal advice. Investments rise and fall in value, so your child could get back less than invested. If you’re not sure an investment is right for you, seek advice.
Global emerging markets
There’s no place quite as diverse as the emerging markets. From big Asian countries like China and India, to Brazil and Mexico in South America, these countries offer a lot of potential as part of a portfolio for investors looking for long-term growth opportunities. But it could take time for them to fully develop, so the risks are greater and higher levels of volatility should be expected. A longer investment outlook is essential.
iShares Emerging Markets Equity Index
- Aims to track the performance of the broader emerging stock market and is one of the lowest-cost options for investing in these markets. This could help the fund track the index closely.
- Invests in a broad spread of companies based across emerging countries, including China, India, Brazil, South Africa and Taiwan. The fund can also invest in smaller companies which if used increases risk.
- This fund is a convenient way to invest in the emerging markets and could be used to diversify a long-term, global investment portfolio focused on growth. There is potential for volatility along the way, so a long investment outlook is essential.
Responsible investing
Responsible investment funds give you the chance to make money in a way that’s in line with your principles. Some avoid investing in areas that do harm, like tobacco producers, weapons manufacturers or alcoholic drinks makers. Others invest in companies that have a positive effect on society – from those that treat their employees well, to those that create clean energy through wind farms or solar panels.
Legal & General Future World ESG Developed Index
- This fund invests in broad developed stock markets while being mindful of environmental, social and governance (ESG) issues. Aims to provide long-term growth and track the performance of the Solactive L&G ESG Developed Markets Index.
- It won’t invest in tobacco companies, pure coal producers, makers of controversial weapons or persistent violators of the UN Global Compact Principles.
- An index tracker fund which invests in broad developed stock markets, such as the US, Japan and Europe and has the flexibility to use derivatives which adds risk if used.
- Invests in around 1,300 global companies, focused towards sectors such as technology, pharmaceuticals and financials. Could be a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way.
Asia Pacific growth
Asia, like the emerging markets, offers plenty of opportunity for growth. Part of Asia is made up of higher-risk emerging markets, like Taiwan, the Philippines and India. But the region is home to more established economies too. This includes Hong Kong and Singapore, which have already developed into two of the world's leading financial hubs. Then there's Australia – it's rich in resources, but it's home to leading retailers and financial companies too.
Over the years, rapid industrialisation, growing populations, and a desire to succeed have helped transform countries in the Asia Pacific 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. However, younger economies mean the risks are potentially greater and more volatility should be expected. A long investment horizon is essential to help ride out the ups and downs.
ASI Asia Pacific Equity
- The fund has a bias towards businesses that rely on growing consumer wealth but aims to have at least some exposure to most major sectors.
- Invests in a wide range of Asian markets, including both established and less-developed economies.
- This fund could provide core exposure to the Asia Pacific region and help diversify a global growth portfolio with a long-term view.
UK growth
The UK is home to some truly world-class companies. This includes big multinational household names, listed in the UK but carry out business across the world, to innovative, higher-risk smaller companies with great growth potential and entrepreneurial spirit. The UK is also home to some exceptional fund managers with great track records of adding value. We think the UK is often a good starting point for investors, and most long-term growth portfolios should have some exposure.
AXA WF Framlington UK
- Invests in UK companies of all sizes, allowing the experienced manager to cherry-pick the best opportunities from across the market, with the aim of long-term growth.
- Provides exposure to home-grown talent, as well as larger, multinational firms. Flexibility to hold onto smaller companies at an earlier stage of their growth, which make the risks greater, but with the hope they grow into long-term gains.
- The fund manager has a unique strategy. He focuses on broader themes and identifies companies likely to benefit as those themes develop over time. Current themes include increased life expectancy, applications of robotics and low-carbon economy solutions.
- This is an offshore fund, so investors aren’t normally entitled to compensation through the Financial Services Compensation Scheme.
More investment options
Our research team scour the market and highlight funds we think have long-term performance potential. You can use the research and tools below to help you build your own portfolio.
Fund shortlist
Our Wealth Shortlist features funds chosen by our analysts for their long-term potential. You can filter the list to find the right ones for you.
Help building a portfolio
Need a hand starting your own investment portfolio? We explain how to build one.
Ready-made portfolios
Choose one of our ready-made portfolios. You’ll still need to regularly review the investments but fund managers will take care of the day-to-day investment decisions.
Financial advice
If you’re not comfortable making your own investment decisions, a financial adviser could help.
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Help and support
If you have any questions about the HL Junior SIPP, you can speak to one of our UK-based client support experts.
Call us on 0117 980 9926