Mutual funds offer higher returns than other schemes. In such a situation, for the better future of the children, they can be given the gift of mutual funds.
Make children’s future better with mutual funds
In view of rising inflation, parents want to invest in better schemes to make their children’s future secure. In such a situation, mutual funds can be a good option for you. It gives higher returns than other schemes. Many reliable companies are offering different plans to add to the huge amount spent from children’s education to marriage. Today we will tell you about four of these mutual funds, from which you can get lakhs of rupees in returns.
Investing in Hybrid Funds or Balanced Mutual Funds is beneficial to keep your capital safe and get better returns on it over the long term. Apart from this, gift funds can also be invested in debt and equity securities. Fixed income securities are a type of debt instrument, whereas shares are a type of equity.
LIC MF Children Fund
This gift fund of LIC has given 33.91 percent return as compared to last year. It has given an average return of 10.50 per cent every year since its inception. Its top five holdings include Government of India, HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., and Tata Consultancy Services. The fund has an expense ratio of 1.41 per cent, which is higher as compared to other balanced hybrid funds. The fund currently has 88.16 per cent equity exposure and 10.87 per cent credit exposure.
Axis Children’s Gift Fund
It is a solution oriented children fund. There is no login period in this. That is, you can withdraw money from it whenever you want. Its market cap is Rs 607.91 crore. In this, if you redeem the scheme within 365 days, then you will get 3 percent bonus. Between 366 and 730 days, there will be a 2 per cent bonus on redeem and one per cent bonus between 731 and 1095 days.
HDFC Children’s Gift Fund
This is a direct plan, whose AUM is 4,667 crores. This mutual fund has given returns of about 48.06 percent in 1 year. It has given an average annual return of 16.44 per cent since its inception. It has Nifty 50 TRI as Primary Index and Nifty 50 Hybrid Composite Debt 65:35 Index as Secondary Index.
SBI Magnum Children Benefit Fund
This is a hybrid mutual fund plan. Government of India, Muthoot Finance Limited, Lakshmi Organic Industries Limited, POWERGRID Infrastructure Investment Trust and Catholic Syrian Bank Limited Fund are its top 6 holdings.
Read also: Shock to taxpayers! There may be delay in getting IT refund, know what is the reason