Fundsmith - the fund launched by City veteran Terry Smith - is planning to launch a Junior individual savings account (JISA) when the structure is launched later this year.

Smith, chief executive of Fundsmith, has backed plans for the JISA limit to be raised £3,600 and has called for existing child trust funds to be converted to the new structure.

He said, 'As Junior ISAs cannot be encashed until the child reaches the age of 18 they are ideal for equity investment and such a long term horizon should help investors, be it parents or grandparents, to ride out the peaks and troughs of the market.

'At Fundsmith we focus exclusively on long term equity investment, buying and holding shares in companies that we believe will be around indefinitely, avoiding fads, leverage, derivatives and complicated hedging. The average company in the Fund has been around since 1890.'

He added, 'Importantly, the Fundsmith Equity Fund Junior ISA will also benefit from our low-cost approach as we don’t charge performance fees, initial fees or redemption fees, and there aren’t the traditional excessive trading costs as our ideal investment holding period is forever.'

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