INVESTMENT CLINIC

I WANT to save for my baby so he has money when he turns 18. Where should I put my savings? H.D., London. WITH savings rates so poor at the moment, your best bet is likely to be investing in the stock market.

A Junior stocks and shares Isa is the sensible option, as profit is shielded from the taxman. You can save £4,128 per tax year, rising to £4,260 in the next tax year.

Pick a cheap provider with a wide range of investments. Comparison site Boring Money lists Charles Stanley Direct and AJ Bell as its top picks. Both charge 0.25 pc a year, or £10.32 on £4,128. You’ll pay fees to the fund managers of typically 0.8 pc a year. Hargreaves Lansdown is more expensive at 0.45 pc, but is renowned for its customer service. Pick more adventurous investments that may give big returns, as over 18 years you have time to make back any losses. Experts advise investing in technology, smaller companies or rapidly growing countries such as China.

Ben Yearsley, of Shore Financial Planning, suggests Lazard Emerging Markets, which has turned £4,128 into £5,783 in five years by investing in companies such as Samsung. Another of his tips is Scottish Mortgage Investment Trust, which has stakes in Facebook and has turned £4,128 into £12,470.

Laith Khalaf, of Hargreaves Lansdown, notes Standard Life UK Smaller Companies. It has turned £4,128 into £9,023 in five years and invests in firms such as JD Sports.

To avoid monthly fees of £10 or so, pick a provider with low costs, such as Hargreaves Lansdown, which charges £1.50 a time.

SEND your questions to: Investment Clinic, Money Mail, Northcliffe House, London W8 5TT.