Childrens Mutual Funds

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Childrens Mutual Funds List

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What are Children's Funds?

Who should invest in Children's Funds?

Features of Children’s Funds

Taxability of Children’s Funds

Risks involved in Children’s Funds

Advantages of Children’s Funds

Who Are These Funds Suited For?

Popular Childrens Mutual Funds

FAQs

A Children’s Fund or Children’s Gift Mutual Fund is a scheme that offers investors the advantage of long-term gains and is ideal for creating a fund for your children that can help in their future educational needs, higher studies, marriage expenses, and other requirements. Children Funds are either Hybrid-Debt or Hybrid Equity schemes, depending on the exposure of the assets.

Yes. Children’s Fund comes with a mandatory lock-in period of 5 years or until the child becomes an adult. It can also be designed to cover different requirements like marriage or child education.

Yes, many fund houses offer dedicated Children’s Mutual Funds, which are devoted explicitly to child-related requirements like a child’s schooling, higher education, marriage, or healthcare. The parents or guardians can invest on behalf of the child and gift the mutual funds to their children.

Yes. The parent or guardian must provide the minor’s age proof to invest in the children’s mutual funds. It can include documents like a Passport, Aadhaar Card, or Birth Certificate, which can present age proof and confirm the date of birth.

Additionally, the investor must also submit proof of relationship with the child, which includes a Passport or Birth Certificate mentioning the parent’s name. A legal guardian can also invest in the child’s name by providing appropriate documents.

Yes, you can invest in a children’s mutual fund for your child, provided that you meet the eligibility criteria by your AMC.

Both child plans and Children’s mutual funds offer several benefits depending on the needs. While child plans are considered risk-free and suitable interest, Children’s Mutual Funds can be volatile but have the chance of providing a higher return in the long-term horizon.

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