How to Pick a Fund for Your Child

Opening a Junior ISA is one of the best gifts you can give a child – but we get it, choosing which fund to invest in can feel like a big decision. Here’s the good news: it doesn’t have to be complicated.

Start with time on your side

Your child has something incredibly valuable that most investors would love to have – time. Whether they’re 2 or 17, they’ve got years ahead for their investment to grow. This means you can generally afford to take a longer-term view.

The funds we offer at Propelle are all designed for long-term investing (ideally minimum of 5 years), which aligns perfectly with a JISA that stays invested until your child turns 18. Your child can then opt to leave that money invested, with even more time to grow once it becomes their Adult ISA. They will have the potential to benefit from a lifetime of compounding. This time horizon is your biggest advantage.

Think about risk and reward

All our funds are multi-asset, meaning they invest in a mix of stocks, bonds and cash. The key difference? How much of each.

Higher equity funds (like our 60% – 100% equity options) have more potential for growth over the long term, but they’ll have bigger ups and downs along the way (volatility). With years until your child turns 18 and beyond, you could have time to ride out those fluctuations.

Lower equity funds (like our 20% – 60% equity options) are more balanced. They still aim to grow, but with less dramatic movement. These might feel more comfortable if market volatility keeps you up at night, or you have a shorter amount of time until your child turns 18 or plans to use the funds.. 

There’s no right or wrong answer here – it’s about what feels right for you and your family.

Does values-based investing matter to you?

We offer three types of funds:

Traditional funds (from Vanguard) – diversified investments across global markets.

ESG funds (from BlackRock) – focused on companies with strong environmental, social, and governance practices.

Sharia-compliant fund (from HSBC) – investments that align with Islamic finance principles.

If raising your child with certain values is important to you, picking a fund that reflects those values can be meaningful. It’s also a great conversation starter as they get older about money, investing, and what matters to them and your family.

Our Fees: At Propelle we have one simple annual fee of 0.7% for traditional and ESG funds, or 1.1% for our Sharia fund. No hidden surprises. The fees are made up of Fund Manager fees and a Propelle platform fee. 

You’re not locked in forever

Here’s something that often surprises people – you can switch funds later if your circumstances or views change. It takes up to 5 days to process, but you’re not making an irreversible decision today.

Many families start with one fund and adjust as they learn more about investing or as their situation changes – for example the time horizon to needing the funds gets longer or shorter. That flexibility is built in.

Remember – any funds in a JISA generally cannot be withdrawn until the child turns 18. So whilst your investment decisions aren’t locked in – the funds themselves are.

Keep it simple

At the end of the day, the most important decision is that you start investing for your child at all. Choosing the right fund for your child is an important decision – it shapes how their money grows over the next 18 years. But the difference between starting today and waiting another year matters far more. 

Starting today means your child gets every single day of potential growth through the power of compounding between now and their 18th birthday. That’s time working in their favour, and it’s something you can never get back once it’s passed.

Still not sure?

Check out the videos and Key Investment Information Documents for each fund in the app. They’ll give you a deeper understanding about how each fund is invested and managed, potential for growth, risk level and past performance. 

Still have questions? We’re here to help. Drop us a line at support@propelle.io, or via the “Ask a question” feature in the app and we can talk through your options. We can’t give you financial advice, but we can explain how our funds work and help you understand what might suit your situation.

The bottom line? You’re already doing something amazing by thinking about your child’s financial future. Whatever fund you pick, you’re giving them something truly valuable – a head start that many of us wish we’d had.

You can open your child’s JISA with Propelle today. 

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Remember: When you invest, capital is at risk. The value of investments can go down as well as up, and you may get back less than was originally invested. Past performance does not indicate future returns. 

If you’re unsure about any investment decision, consider seeking independent financial advice.