Investments  

Product review: Standard Life and Scottish Friendly Jisa

Product review: Standard Life and Scottish Friendly Jisa

Standard Life and Scottish Friendly have teamed up to offer the My Easy Option Junior Isa with five risk profile options.

The partnership was devised to bring Scottish Friendly’s experience in offering a plan that enables customers to set up multiple pots within their Jisa, together with Standard Life’s experience in investments.

Each pot within the offering operates as a life policy held within a Scottish Friendly Jisa, which is administered by Scottish Friendly and is invested in a choice of five funds backed by Standard Life.

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Each fund bears a risk and reward grade ranging from lower risk exposure, invested in assets such as bonds, to a higher risk profile which has greater exposure to equities.

The Jisa offers monthly investments from £10 and lump sum investments from £50, with an option to increase payments automatically by 2.5 per cent, 5 per cent, or 10 per cent each year.

Individual pots within the Jisa can be created to support saving for specific purposes, such as funding education or a deposit for a flat, with investments tailored to each goal.

Customers can manage the Jisa online to view latest statements and manage regular payments, and, in line with Budget guidelines, it is possible to transfer a Child Trust Fund (CTF) into the product.

www.standardlife.co.uk /www.scottishfriendly.co.uk

Comment:

When investing in a Jisa, parents can choose between a cash or stocks and shares Isa. While cash Isas tend to be the go-to option, low interest rates have made this route less appealing.

The My Easy Option Jisa is a stocks–and–shares Isa, as it invests in one of five Standard Life MyFolio managed funds. The risk profile of this type of Isa will depend on the underlying assets in which the fund invests, and this product comes with five varying risk profiles to chose from.

Though not indicative of future gains, past performance of the five funds has been good. For example, over the past three years, the lowest risk portfolio has returned an average 5.92 per cent, and the high risk portfolio 12.75 per cent. While all five options invest mainly in the UK, as the risk profile increases, so does the Jisa’s exposure to equities and international investments.

The products looks a good option for organised parents who are looking for a structured long-term investment for their children that is free of tax.