There are many such schemes in the market, in which money can be invested in the name of children. But very few people pay attention to child mutual funds.
Best Investment Plan for Your Child: Financial advisors advise to start saving for the future of children as early as possible. Anyway, the way education is getting expensive in today’s era, after becoming an adult, a large amount of money may be needed for the child. Anyway, if you plan by being disciplined, then children can get a strong financial support when they grow up. There are many such schemes in the market, in which money can be invested in the name of children. But very few people pay attention to child mutual funds. Mutual fund schemes are also available in the market in the name of children. If you look at the return chart, many of these schemes have given excellent returns in the long term.
These benefits with high returns
AK Nigam, Director, BPN Fincap says that child mutual funds of many fund houses are available in the market. However, it is not a limitation that you should invest in only those schemes. You can invest in any of the best mutual fund schemes while planning for the future for your children. Since this plan is of 15 years or 20 years i.e. long term, hence the option of SIP is better. There are a few child funds in the market, which have given returns of 10 to 16 per cent per annum in the last 15 to 20 years.
Some child plans offer different options to investors depending on the composition of equity and debt. For example, the option of choosing a portfolio with high debt for investors who do not take much risk. At the same time, aggressive investors get the option to choose a portfolio with more equity. These have a lock-in period, from which money cannot be withdrawn before a certain time. You cannot withdraw investments in these until 5 years or the child becomes an adult.
ICICI Prudential Child Care Fund
Launch date: August 31, 2001
Returns Since Launch: 15.502%
Value of 1 lakh lump sum investment in 15 years: Rs 5 lakh
Value of Rs 5000 Monthly SIP for 15 years: Rs 24.50 lakh
Value of 1 lakh lump sum investment in 20 years: Rs 17.5 lakh
Value of Rs 5000 Monthly SIP for 20 years: Rs 65 lakh
Total Assets: Rs 834 crore (February 28, 2022)
Expense Ratio: 2.40% (February 28, 2022)
HDFC Children’s Gift Fund
Launch date: March 2, 2001
Returns since launch: 16.22%
Value of 1 lakh lump sum investment in 15 years: Rs 7.64 lakh
Value of Rs 5000 Monthly SIP for 15 years: Rs 31 lakh
Value of 1 lakh lump sum investment in 20 years: Rs 20.62 lakh
Value of Rs 5000 Monthly SIP for 20 years: Rs 70 lakh
Total Assets: Rs 5204 crore (February 28, 2022)
Expense Ratio: 1.88% (February 28, 2022)
Tata Young Citizens Fund
Launch date: October 14, 1995
Returns since launch: 12.85%
Value of 1 lakh lump sum investment in 15 years: Rs 4.50 lakh
Value of Rs 5000 Monthly SIP for 15 years: Rs 23 lakh
Value of 1 lakh lump sum investment in 20 years: Rs 12 lakh
Value of Rs 5000 Monthly SIP for 20 years: Rs 47 lakh
Total Assets: Rs 255 crore (February 28, 2022)
Expense Ratio: 2.59% (February 28, 2022)
UTI Children’s Career Fund
Launch date: February 17, 2004
Returns Since Launch: 10.24%
Value of 1 lakh lump sum investment in 15 years: Rs 5.260 lakh
Value of Rs 5000 Monthly SIP for 15 years: Rs 26 lakh
Total Assets: Rs 592 crore (February 28, 2022)
Expense Ratio: 2.49% (February 28, 2022)
(source: value research)
(Disclaimer: Investment in mutual funds is subject to market risks. Financial Express does not offer any investment advice. Before investing, do your own research or consult your financial advisor.)
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