Junior ISA Risks - What type of investor are you?

Junior ISA Risks - Find out what type of investor your are and your preferred level of risk.



	Which Junior ISA best suits you?

	Here at TaxFreeJuniorISA.co.uk we can’t tell you where you should put your money, that’s for you to decide. Whilst most other Junior ISA Providers have decided that one size fits all, we understand that everyone has different needs and goals. This is why we have tailor made a range of Junior ISAs which we feel will suit most type of investors whether your very cautious or more of an adventurous investor who prefers to take higher risks. Please use our table below to help you choose which Junior ISA is right for you: Important Note: During our online application you can choose more than one fund for your investment. For example, you can allocate 50% of your investment in the Prudential Cautious fund whilst having 25% in both the balanced and adventurous prudential funds should you wish. You can also choose to invest in both our Ethical and Sharia funds as well. How much you decide for each fund is entirely up to you and once the Junior ISA account is open you can easily change your fund choices and allocations free of charge.

Risk	Notes	Available Junior ISAs	Summary
Cautious / Lower Risk Investor	If you are a cautious investor, it is likely that, when investing your money you look for the security that your investment’s value won’t go up and down a lot. *Other people with this attitude to risk often share the following common traits* You accept that the value of your investment isn’t guaranteed and might go down as well as up. You’re comfortable with some of your money being invested in shares, but not all of it, and some of it may be outside the UK. You accept that it’s possible you may lose some of what you invested for the prospect of better growth. You’ll probably want to spread your money across different types of investments, which should help to reduce the risk by balancing out one type of risk against another.	Prudential Defensive	Defensive / Lower risk investment funds tend to have a mix of investment types or just fixed interest securities. Our Prudential Cautious Fund is ideal for investers looking for a low / cautious risk investment.
Balanced / Medium Risk Investor	If you’ve got a balanced attitude to risk, it’s likely that you already have an interest in investing and are comfortable with the ups and downs of the stock market. *Other people with this attitude to risk often share a number of common traits:* You’re happy to put a significant proportion of your money in shares or other longer-term investment types. You accept that there’s a risk of losing your money, but this is balanced with the prospect of greater growth. You might have an interest in and knowledge of the stock market. You understand the general risks involved with investing.	Prudential Balanced	Medium risk funds take risks to provide greater returns. They tend to contain higher risk fixed interest investments, shares and commercial property. These may be outside the UK. Our Prudential Balanced Fund is ideal for investers looking for a medium / balanced risk investment.
Adventurous / Higher Risk Investor	If you’re prepared to take high risk, it’s likely that you’re an experienced and knowledgeable investor, whose primary aim is to achieve the highest possible returns on your money, while accepting that this means taking substantial risks. *Other people with this attitude to risk often share a number of common traits:* You’re happy to invest in funds in specialist areas or new markets, or both You’re looking for high returns on your money, and you’re willing to take substantial levels of risk to achieve it You accept that there’s a real risk of losing your money, but this is balanced with the prospect of greater growth You’re attracted to new markets with substantial risk, or enjoy trying new types of investment You accept that the value of your investment can fluctuate rapidly and by a large amount. You’re experienced in investing in the stock market, and probably already manage a range of your own investments You understand the risks posed to your money when investing, particularly that your investment is very likely to regularly go up and down in value.	Prudential Adventurous Ethical Junior ISA Shariah Junior ISA	Adventurous funds tend to be in specialised areas or in one or more countries outside the UK. Our Prudential Adventurous, Ethical & Sharia Funds are ideal for investers looking for a more adventurous / higher risk investment.


	Top Tips for choosing a Junior ISA

Clearly set out and understand your goals and targets.
This makes it easier for you to determine the level of risk you are prepared to take and exactly what you want to achieve from your investment.
Consider the length of time you are wanting to invest and what your main objective is.

Try to avoid putting all your eggs into one basket
The best way to spread your risk is to diversify. This means to have a wide range of different investments to help avoid exposure to any single investment failure.
All our Junior ISA Accounts offer diversification. Each fund (cautious, balanced & adventurous) invests in a wide range of investments to help minimise this risk.

Are you a Cautious or Adventurous investor?
We are all different when it comes to investing our hard earned money which is why we have tailor made three different Junior ISAs which we feel will appeal to most types of investors including the cautious(lower risk), balanced(medium risk) & adventurous(higher risk). We are also proud to offer both an Ethical Junior ISA as well as a Shariah Junior ISA.

If you are risk averse then this makes you a very cautious investor. You perhaps prefer to invest in cash accounts which build up your investment slowly over time. This can help smooth out the ups and downs but don’t forget that less risk means less return in the long run and by investing in cash you are at a much higher risk from inflation eroding away your investment.
Here at TaxFreeJuniorISA.co.uk we only offer Investment Junior ISAs and do not offer a Cash Junior ISA.

Which Junior ISA best suits you?

Top Tips for choosing a Junior ISA