These riskier themes fit well with the remit of saving for children, according to Andy Parsons, advice team manager at the Share Centre.
"Parents should initially look to invest the money in high risk areas like emerging markets, commodities and global ideas, and scale down the risk about three years before their goal withdrawal date by moving into fixed income, much like within a pension," Parsons said.
He added: "The key thing is that investors start saving early. If they do that then they can have high exposure to fast growing – albeit volatile – economies."
Parsons is bullish on the outlook for developing economies.
"It is said that past performance is no guidance on future performance, but given the fast growth of emerging markets, I see no reason for this to suddenly stop."
Top funds over 10-yrs
| Fund |
10-yr |
| BlackRock Gold & General |
1097.48 |
| HSBC Gif Indian Equity |
651.58 |
| JPM Natural Resources |
874.13 |
| Scot Wid Latin American |
523.81 |
| Threadneedle Latin American |
535.03 |
Source: Financial Express Analytics
HSBC Gif Indian Equity, Scottish Widows Latin American and Threadneedle Latin American are among the funds which have returned the most to investors in the past decade.
They have a higher-than-average volatility score, however, taking on 34 per cent, 28 per cent and 28.5 per cent respectively in the period, compared to an IMA Global Emerging Markets sector average of 22.7 per cent.
Bottom funds over 10-yrs
| Fund |
10-yr |
| Henderson Global Innovation |
-41.55 |
| Legg Mason US Equity |
-41.66 |
| Investec Global Dynamic |
-41.69 |
| Henderson UK Strategic Income |
-44.3 |
| Invesco Global Technology |
-64.14 |
Source: Financial Express Analytics
At the other end of the scale, those funds which have lost the most money cover a wider spectrum; technology, UK Equity and global funds, for example. Invesco Global Technology has lost the most money over the past decade – 64 per cent – while taking on 29 per cent of risk.
The government's contributions to children's savings via the Child Trust Fund (CTF) scheme will stop at the end of the year, putting the spotlight squarely on Junior ISAs.
"[The junior ISA] is effectively a CTF without the government contributions and will offer a simple way to save on behalf of children without parents having to worry about tax considerations," AWD Chase de Vere's Patrick Connolly explained.
Details of the government scheme aren't expected until spring, but the Junior ISA will be tax free, owned by the child, and locked in until they reach 18. One way for parents to invest for their children is in stocks and shares via a fund, an option which was not available via CTFs.
"The bonus of Junior ISAs compared to Child Trust Funds is that there is a wider selection for investors," Whitechurch Securities' Gavin Haynes said.