The Kids’ Portfolio: Four top funds to buy for your children

Having 40 years to invest can free you up to take risks in the big themes of the next few decades, says David C Stevenson. Here, he picks four of the best funds to buy for the long term.

One of my colleagues recently became a father at 50. So I wasn't surprised when he dropped me a long note extolling the virtues of long-term saving for his young child. This prompted me to reflect on the challenges of creating a portfolio that is intended to be tucked away for 20 to 40 years. In many ways, this problem is wonderfully liberating. You don't have to worry about volatility in fact, you should embrace it. You don't require a steady income although investing for dividends still makes sense. Instead, you can think boldly about how the world might look in the distant future.

The result of this musing is my latest portfolio: the Kids' Portfolio. My aim is to construct a simple collection of just four funds that you can buy and hold. I don't recommend fiddling around with picking the right buying moments just put some money away on a regular basis, keep track of what the fund manager says every year, and then forget about them. My little twist is that I want a big theme to dominate each fund selection something that you can explain to them when they're old enough not to ask for extra pocket money.

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David C. Stevenson
Contributor

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com

David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space. 

Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business. 

David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust. 

In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.