How should I choose funds for a Junior SIPP?

Q: I’ve just opened a Junior SIPP for my 12-year-old but am completely bamboozled by which fund to invest in. I am looking for a very long-term growth strategy but am concerned about the current volatility too. I want to invest this money and then leave it, as I am not expert enough to be regularly changing funds.

A: Investing is a long-term game - but building a pension for a child requires particular patience. Your 12-year-old might not be able to access this money for another 50 years. (You can currently draw from a private pension at age 55, but this is rising to 57 in 2028 and could go higher). Your investment strategy needs to reflect this.

Nobody knows what the world will look like in five decades’ time, so it makes sense to fall back on principles rather than predictions.

The first principle is growth. You have a very long-time horizon, so you should prioritise assets with good growth prospects. The pension risks being ravaged by inflation if you don’t. Nothing is guaranteed, but equities tend to be a good way to increase wealth over many years - even though they are volatile in the short term. Lower risk assets such as bonds and cash are more stable but tend to grow more slowly.

The second thing to consider is diversification. Over the past 50 years, US stocks - specifically US tech stocks - have come to dominate the world stage. The landscape could change in the next 50 years, however, so it makes sense to invest across a range of different regions and sectors.

Last up, you need to decide whether to prioritise passive or active funds. There are arguments in favour of both. However, given your time horizon and your buy-and-hold approach, a passive strategy might be preferable. Fees will be lower, and you will not be reliant on the stock-picking skill of a particular portfolio manager, who will almost certainly retire at some point in the next 50 years.

Bearing all that in mind, a good starting point might be the Vanguard FTSE Global All Cap Index Fund. This world tracker fund is one of Fidelity’s best-selling funds of 2026 and offers exposure to countries around the world. It is less US-heavy than many of its peers, investing in both developed and emerging markets.

• Read: Top 10 best-selling ISA and SIPP funds of 2026

Other world tracker options include the Legal & General Global Equity Index, which features on our Select 50 list of favourite funds. This has lower fees than the Vanguard product but is more top heavy. Its top 10 holdings currently represent 24% of the fund compared with Vanguard’s 20%.

Given the time horizon, you might feel comfortable dialling up the risk and investing in some emerging market funds too. Emerging markets are considered riskier than developed ones, but they tend to be fast growing with strong structural tailwinds.

The iShares Core MSCI EM IMI UCITS ETF is a straightforward way to add some emerging markets, including China, India, Brazil and South Africa, to the portfolio. BlackRock runs iShares and has good experience in index tracking.

• Read: Which global index fund is best for you?

You might want to invest closer to home as well. The Fidelity Index UK Fund tracks the performance of the FTSE All-Share and was a best-seller on the Fidelity platform last spring. The UK market is a rich source of dividends, which can turbocharge returns over several years, and houses lots of companies you and your child will know.

This dividend point is worth dwelling on. You can typically buy two versions of a fund: an income (or ‘inc’) version and an accumulation (or ‘acc’) version. The former pays out regular income into a designated account, while the latter reinvests the dividends. For a Junior SIPP, acc funds may be more suitable, as your returns will be magnified over time by the reinvested dividends.

• Read: Compounding in a nutshell

Whatever you decide, you will only hold the reins for a few years. Control of a Junior SIPP will automatically pass down to your child when they reach the age of 18.

• Open a Junior SIPP

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• Read: The stunning impact of maxing out a Junior ISA
• Read: How to build a £1m pension pot
• Watch: These are the money lessons to teach your children

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a SIPP or ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a SIPP will not normally be possible until you reach age 55 (57 from 2028). Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Select 50 is not a personal recommendation to buy or sell a fund. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.