Legal & General Investments has unveiled details of its new stocks and shares Junior ISA.
There are three options for parents to choose from when saving for a child, spanning the range in risk appetite to meet different investors’ needs.
The Multi Manager Balanced Trust responds to the markets and is the lowest risk product, while the UK Index Trust follows the UK market.
Parents who prefer a higher risk option can instead pick their own funds from a range of more than 30 unit trusts.
Simon Ellis, managing director of Legal & General Investments, said: “Investing in the stock market should be seen as a long-term process, so by starting at birth, the Junior ISA has the chance to deliver growth over 18 years, riding out any short-term market volatility.”
A maximum of £3,600 can currently be invested into a Junior ISA each year, free from personal income or capital gains tax and is locked away until the child reaches 18.
Once set up, friends and family can also contribute to the account, with the initial minimum investment for a regular direct debit set at £30 a month and a £500 minimum for lump sums.