The value of investments and any income from them can fall and you may get back less than you invested.
With a stocks and shares Junior ISA, there is no income tax or capital gains tax to pay on the investment returns. You can invest up to £4,368 on behalf of each child in the 2019/20 tax year, but they won’t be able to access the money until they are 18.
With a bare trust the funds can be accessed for the child’s benefit any time you need, and the trust structure enables trustees to retain control over what the money is spent on. This investment makes use of the child's investment allowance.
What's the difference
Choosing the right product depends on your requirements. We've compared key product features here.
Information is provided only as an example and is not a recommendation to pursue a particular strategy.
|Junior ISA||Bare Trust|
|Who can open an account?||Parents or guardians only, but anyone can contribute||Can be set up by anyone for a child|
|When can the funds be accessed?||Money is locked up until the child is 18 years old||Money can be used for the child’s benefit straight away|
|What investment limits are there?||Up to £4,368 can be invested on behalf of each child this tax year||There are no investment limits|
|What are the tax implications?||All resulting dividends and capital gains are tax free||Gains or income use the child’s personal tax allowances|
|What is the minimum I need to invest to get started?||A lump sum of £1,000 or £100 a month regular contribution||A lump sum of £1,000 or £100 a month regular contribution|
Why Brewin Portfolio Service?
Choosing one of our investment products gives you access to our years of investment experience.
We’re committed to keeping our fees as low as we can, to help you make more of your investments.
A range of portfolios
With a range of six portfolios to choose from you will find one that matches your own attitude to risk and return.
Our portfolios are designed by our in-house research team, giving you access to highly qualified investment thinking.
Your choice of portfolios
Before taking advantage of the Brewin Portfolio Service, you will need to decide what level of risk you are comfortable with. Our model portfolios offer six different risk categories. By adjusting the asset mix in each we have made it simple to find a portfolio that is right for you.
NO INVESTMENT RISK - PORTFOLIO NOT AVAILABLE
You are completely averse to any investments that could put your capital at risk. You accept that, in light of inflation, this is highly likely to have the effect of eroding the purchasing power of your capital. This typically means that your money will be held in cash, building society accounts or national savings.
EXTREMELY LOW RISK - PORTFOLIO NOT AVAILABLE
You are prepared to accept only a very limited risk of loss to your capital. As a result your investment portfolio is likely to be composed of interest bearing assets with limited potential for short or long-term growth. You accept that in light of inflation, this strategy may have the effect of eroding the purchasing power of your capital. This means that you will still typically invest in cash and national savings, but will also have some exposure to fixed income investments (in the form of UK Government securities - gilts) and to equities (in the form of collective investment schemes).
VERY LOW INVESTMENT RISK PORTFOLIO
You are averse to risk and therefore not comfortable with significant investments in your portfolio which might put your capital at risk. Preservation of your capital is very important to you and you would like to maintain the real value of your investments against inflation. Your portfolio will typically have some exposure to equities and a proportionately higher exposure to fixed income investments, at least some of which will contain market exposure.
LOW INVESTMENT RISK PORTFOLIO
You are not comfortable with having the majority of your portfolio in higher risk investments such as equities. Capital preservation is important to you and you would like to maintain the real value of your investments against inflation. Your portfolio is likely to be more evenly balanced between equities and fixed income investments.
LOW TO MODERATE INVESTMENT RISK PORTFOLIO
You would like a significant proportion of your portfolio to be in higher risk investments and you are willing to accept a greater short term potential for losses from your overall portfolio, in order to generate potentially higher long term returns. Your portfolio may typically have a higher exposure to equities than fixed income investments and is likely to have low to moderate levels of market volatility.
MODERATE INVESTMENT RISK PORTFOLIO
You are prepared to have the significant majority of your investments in equities in order to achieve higher returns at the expense of greater risk to your capital. Your portfolio will typically have a substantially higher weighting towards equities than fixed income investments and is likely to have moderate market volatility.
MODERATE TO HIGH INVESTMENT RISK PORTFOLIO
You would like to have the opportunity for large scale returns and you are comfortable with having a larger proportion of your capital at risk, and accept the possibility of larger short term losses, in order to achieve your long term investment aims. Your portfolio will typically have a very high weighting towards equities and very low levels of fixed income investments. Your portfolio is likely to have moderate to high market volatility.
HIGH INVESTMENT RISK PORTFOLIO
You would like to have the opportunity for high returns and you are prepared to accept the possibility of a significant loss of capital in order to achieve these greater potential returns. Your portfolio will typically be almost exclusively invested in equities. Your portfolio is likely to have high market volatility.
VERY HIGH INVESTMENT RISK - PORTFOLIO NOT AVAILABLE
You are willing to invest in higher risk and speculative investments to achieve high possible returns and accept the risk of losing all, or a substantial part, of your capital. Typically, this could include very high risk investments such as venture capital trusts, enterprise investment schemes, business property relief schemes and other specialist investments.
EXTREMELY HIGH INVESTMENT RISK - PORTFOLIO NOT AVAILABLE
You are prepared to make wholly speculative investments, fully aware of and accepting the possibility of losing all of your capital. This could typically be in the form of derivatives and contingent liability investments, which often include gearing, which means you could lose more than your initial capital investment. You are totally insensitive to risk.
Our portfolios are geared to minimise costs. On investments above £2,000 you will pay a total of between 0.81% and 0.86% a year for our service, charged in easy-to-manage monthly instalments.
The fee you pay is made up of two separate charges: an annual charge of 0.7% of the value of your portfolio for each account and charges on underlying funds in which your portfolio is invested. These fund charges are typically between 0.11% and 0.16% per year.
The table below illustrates, in cash terms, exactly how much you will pay for Brewin Dolphin’s management of the Brewin Portfolio Service (BPS). As you can see, the charges rise depending on the portfolio balance. Any other charges that may apply, such as for withdrawals or account closures, can be seen in our Frequently Asked Questions section.
Illustrative charges on a range of portfolio values
|Service fee @ 0.70%||£14||£35||£70||£105||£350||£700|
|Estimated underlying Annual Fund charges @ 0.16%||£3.20||£8||£16||£24||£80||£160|
|Total Estimated Annual Service Cost||£17.20||£43||£86||£129||£430||£860|
|Charged monthly at:||£1.43||£5.83||£5.83||£8.75||£29.17||£58.33|
The BPS investment minimum is £2,000, however you can start a Junior ISA or a Bare Trust from £100.
UK VAT and Stamp Duty is applied on fees and charges in line with applicable legislation. Other duties, transaction taxes etc. may apply in certain cases in line with overseas law.