Parents in the UK are investing mainly in emerging markets for their children's financial future, data from JP Morgan Asset Management (JPMAM) indicates.
JPMAM’s own data shows that emerging markets are both the most sold and most invested-in funds within its Junior ISA range.
Junior ISAs are tax-free savings accounts which the UK government launched in November 2011.
The top four of the 10 most popular JPMAM Junior ISAs by total amount invested are either emerging market funds or China. Two other funds in the top 10 are the JF Asia Pacific ex-Japan Equity fund and the BlackRock Emerging Markets fund.
Five of the top 10 fund choices by number of investors were also emerging market-based, including an India fund.
Keith Evins, head of UK funds marketing at the asset management firm, said: “We have seen that parents are looking across the globe for returns for their investments, in particular, looking at emerging markets to deliver long-term returns for their children.”
JPMAM consumer research found that over a third of parents with teenagers (35%) felt they will be supporting their children financially in one way or another for the rest of their lives.
©2012 funds europe