"Most Jisas are going to be inherently very long term, because they cannot be accessed until the child is 18, there is ample time for short-term bumps in stock markets to be ironed out.”
2) Middle-aged investors
The adult Isa annual allowance is £20,000 - but again, where should these investors be putting their money, given the conflicting needs of growth and income generation.
For Master Adviser's Jim Harrison, although middle-aged investors might not yet be using Isas to supplement their earned income, they ought to be building towards that target.
He said: "Starting to buy an income stream now, and reinvesting dividends until they are needed, is an alternative to the growth-only option, and I’d suggest taking a look at Dunedin Income Growth.
"A healthy dividend yield of 4.3 per cent, rock solid dividend cover of 1.24 years, and a board who are focused on the sustainability of that dividend should give a long-term investor great comfort.
“For international exposure, Murray International should be in every investor’s portfolio, not just the middle-aged. An above average dividend yield at 4.1 per cent, almost a full year’s revenue reserves and capital growth in addition to the dividends make this an attractive choice.”
Genevra Banszky von Ambroz, partner, investment management at Evelyn Partners, said: “Us millennials are in our 30s and 40s now. Most of us have many more financial and personal commitments than we did in our 20s, and our risk appetites have moderated as a result.
"The good news is that there are still some great options to consider in the investment company universe.
"Someone looking for a core, diversified global equity fund might consider Alliance Trust."
3) Retired investors
With little to no employment-related income, or maybe just a little from childcare, part-time work or non-executive directorships, many people of pensionable age will be looking to their investments to supplement any pension income they might have.
For Banszky von Ambroz, finding that income is therefore paramount.
She advocated International Public Partnerships, stating: "This is a very well-established company with a long track record of delivering a diversified portfolio of predominantly operational social infrastructure projects across the UK, Europe, North America and Australia.
"Its underlying assets have strong inflation correlation and support an attractive covered dividend."
But as many pensioners are more likely to prefer lower-risk investments, and want to focus on capital preservation, she also advised pointing clients towards Capital Gearing Trust, managed by Peter Spiller since 1982.
