Junior ISA investments boom as families focus on long-term growth

By Michael Morton
17th November 2025

Related topics: Hargreaves Lansdown [LON:HL.], ISAs

Junior ISA investments boom as families focus on long-term growth

British families, long accused of under-saving, appear to be rediscovering the virtues of patient capital, at least on behalf of their offspring. Junior ISAs (JISAs), the tax-advantaged wrappers designed to encourage long-term saving for children, are enjoying a remarkable renaissance.

Hargreaves Lansdown (HL), the UK’s largest investment platform, reports that the average JISA balance on its books has jumped by more than 140% over the past 12 months, surpassing £8,000.

In an era of sticky inflation, fractious markets and nagging doubts about the future of the state pension, parents seem ever keener to ensure that their children start adult life on a firmer financial footing than they did.

A shift in attitude on Junior ISAs

The scale of the inflows is striking not just for their velocity, but for their breadth. Families are taking full advantage of the £9,000 annual allowance, and enthusiasm spans both active fund pickers and passive devotees. That suggests not a fad but a shift in attitude: households are rediscovering the merit of compounding returns over decades, rather than hunting for quick wins in choppier markets.

Kate Marshall, lead investment analyst at Hargreaves Lansdown, says the surge reflects a more deliberate approach to building children’s nest eggs. “Families increasingly look to make the most of the allowance and invest for children’s futures,” she notes.

Nearly half of HL’s JISA investors now opt for regular monthly contributions rather than lump sums. Such drip-feeding smooths the bumps of market volatility (pound-cost averaging in action) and reinforces the view of the JISA as a slow-and-steady savings vehicle rather than a speculative punt.

Where does the money go?

Predictably, global and US-focused funds top the charts. Investors appear to share a widespread belief that America’s innovative muscle and global equity diversification remain prudent long-term bets. UK funds, while less fashionable, still draw support from home-bias comfort.

More intriguing is a rise in interest in Indian equity funds. With India chalking up one of the fastest growth rates among major economies, and a demographically blessed population, parents seem keen to secure a slice of its prospective expansion.

The broader trend is clear: families are engaging more intentionally with long-term financial planning, and the JISA is becoming the core tool for doing so. For those unsure where to start, a few fund types illustrate the palette available.

HL’s top fund picks for Junior ISAs

Hargreaves Landsown says one global option is the Legal & General Future World ESG Tilted and Optimised Developed Index. It offers broad exposure to developed markets such as the US, Japan and Europe, while weaving in environmental, social and governance considerations. Excluding tobacco, coal, armaments and serial violators of UN Global Compact principles, the fund tracks its benchmark with mechanical discipline. It represents a clean, simple way to participate in worldwide growth without carrying the moral baggage some parents prefer to avoid.

For those with a taste for faster-growing regions, FSSA Asia Focus presents a bolder flavour. Asia’s structural story of industrialisation, rising domestic consumption and technological ambition, remains intact. The fund’s managers boast a long pedigree in identifying the region’s winners, and its focus on high-quality companies positions it well for families willing to withstand emerging-market swings in exchange for juicier long-term potential.

More cautious households may favour ballast. Troy Trojan, a total-return fund, blends shares, bonds, commodities and currencies in pursuit of steady growth with limited drama. Its multi-asset design aims to cushion portfolios when markets slide, though such prudence means it will rarely match the sharpest equity rallies. Still, for nervous parents, or those balancing a racier selection elsewhere, it offers a stabilising anchor.

As British families reassess the value of time and compounding, the JISA is evolving from niche tax wrapper to essential household tool. Children of the 2030s and 2040s may one day be grateful.