Legal & General (L&G) has launched a stocks and shares Junior ISA which provides three investment options to contributing family and friends.
The three investment options afford different levels of risk to the investor.
The lowest risk option is the The Multi Manager Balanced Trust, while the highest allows investors to pick their own funds from L&G's range of unit trusts.
Moderate risk investors can opt for The Legal & General UK Index Trust, which follows the UK market.
Once the Junior ISA has been opened, friends and family can contribute with an initial minimum investment of £30 for a regular direct debit. There is a £500 minimum for lump sums.
If someone is already making regular contributions, or has deposited a £500 lump sum, they can top up at any time with a minimum of £100, or increase their direct debits by any amount.
Simon Ellis, managing director of L&G Investments, said: "We have selected a range of options that we think best fit people's investment needs and risk appetite.
"Investing in the stock market should be seen as a long-term process, so by starting at birth, the Junior ISA has the chance to deliver growth over 18 years, riding out any short term market volatility."
A maximum of £3,600 can be invested into a Junior ISA per year and the investment will be free from personal income or capital gains tax. The funds will be made available when the child reaches 18.
Any Junior ISAs opened with Legal & General Investments will be automatically rolled into an adult stocks and shares ISA, when it matures, at which point the account holder will be able to access the funds should they wish.
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