Have you ever read an article about how much your portfolio could be worth if someone started investing for you when you were born and then wondered why no one he did Are you thinking about starting to invest on your behalf as a child?

Whether this actually happened or not, the good news is that you can now decide to start investing on behalf of your child, grandchild or other newborn relative or family friend.

Before you do this, you need to think about a few things.

Why invest – and for what purpose?

Even well-intentioned gestures can sometimes be received differently than you expect.

This may now be the case for parents of a newborn child. Or it may be caused by a child who has entered his twenties and has declared his ideals before belatedly realizing that much of his wealth is in BAE systems AND Babcock the shares you bought for them.

Before you take any action, get the consent of your child’s parents or legal guardians (if that is not you). It can also facilitate anyone justify what you are trying to achieve and why.

Is it about accumulating capital, for example to support a future home purchase?

Or maybe it’s about passive income, whether it’s pocket money in childhood or living expenses in early adulthood?

Alternatively, could it be primarily about engaging your child in learning about business, finance, investing and personal finance?

Choose the best way to invest

There are various ways to start investing in the stock market on your children’s behalf.

An obvious place to start is to look at the pros and cons of a Junior ISA. Perhaps less known, but also worth watching, is Junior SIPP. Opening a boarding house for a newborn is planning for the future!

However, for grandparents who are not also legal guardians, Junior ISA and Junior SIPP may not be an immediate option. The regulations state that only parents or legal guardians can open them.

Please note that tax treatment depends on each client’s individual situation and may change in the future. The content of this article is for informational purposes only. It is not intended to be and does not constitute any form of tax advice. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

Grandparents may still be able to provide the cash needed to start investing through such platforms.

They may also consider the potentially more complicated (but more widely available) process of setting up mutual fund stock trading accounts.

Build the right portfolio

Regardless of the structure you choose and the goals you set, there will come a time when you will be ready to start investing.

The long time scale of childhood lends itself well to a long-term approach to investing.

One stock that I think is worth considering for both its long-term growth and income potential is FTSE100 financial services company Aviva (LSE: OFF).

Because adults know better than children, insurance is monotonous, but it is one of the necessary things in life. This means the market is huge and resilient.

Aviva is the UK’s leading general insurer. It increased its scale through moves such as the acquisition of Direct Line.

This creates economies of scale. It has well-known brands, a huge customer base (millions of whom already buy many financial products from it) and proven knowledge in the field of underwriting.

There are risks, such as occasional reductions in insurance premiums. This could damage Aviva’s profitability more than most of its competitors as the country’s leading insurer.

However, I like the company’s potential – and the dividend yield of 6.2%. This is double the current FTSE 100 average.

Is it worth investing £5,000 in Aviva Plc now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if Aviva Plc is on the list?

Christopher Ruane does not hold any position in the companies mentioned.