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Childrens Mutual Funds

Children’s Fund or Child Gifting Mutual Fund is an open-ended scheme designed primarily for child-specific needs like educational expenses, relocation, higher studies, healthcare, marriage, etc. These funds come with a 5 year mandatory lock-in period or until the child becomes an adult, whichever is earlier. View More

Just like any other mutual fund, the amount invested in this scheme is utilized by the fund manager to buy stocks, bonds, debt, money instruments, and other financial assets, which can earn good returns over time. These returns are passed on to the investor as dividends they receive at regular intervals while providing long-term capital gains.

Depending on the investment horizon and goal, investors can choose from among two Children’s Funds i.e. Equity-Focused and Debt-Focused.

Children’s Gift Mutual Fund allows the parents to create a separate fund dedicated to this child’s requirements, enabling them to keep their expenses and create a dedicated fund for their child’s needs. The child can receive the amount accumulated when they turn 18 and can also be utilized for their needs..

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List of Childrens Mutual Funds

Filters
logo SBI Magnum Children's Benefit Fund - IP - Dir Growth

14.97%

Fund Size (Cr.) - 3,589

Invest
logo ICICI Pru Child Care Fund-Gift Plan - Direct

6.72%

Fund Size (Cr.) - 1,343

Invest
logo HDFC Children's Fund - Direct Growth

6.67%

Fund Size (Cr.) - 10,177

Invest
logo Tata Young Citizens Fund - Direct

6.51%

Fund Size (Cr.) - 366

Invest
logo Aditya Birla SL Bal Bhavishya Yojna - Dir Growth

5.45%

Fund Size (Cr.) - 1,114

Invest
logo UTI-Children's Equity Fund - Direct Growth

4.96%

Fund Size (Cr.) - 1,129

Invest
logo UTI-Children's Equity Fund - Direct (Scholarship)

4.96%

Fund Size (Cr.) - 1,129

Invest
logo LIC MF Children's Fund - Direct

2.31%

Fund Size (Cr.) - 15

Invest
logo SBI Magnum Children's Benefit Fund - Savings Plan - Dir Growth

11.37%

Fund Size (Cr.) - 127

Invest
logo AXIS Children's Fund - No Lock in - Dir Growth

10.86%

Fund Size (Cr.) - 908

Invest
View More

Who should invest in Children's Funds?

Children’s Fund is focused on helping parents and guardians save money for their children and gain sizeable returns from their investments. Thus, it invests in low-risk opportunities like bonds, real estate, commodities, and some high-risk ones like equity-linked stocks. View More

In addition to providing financial support, the Children’s Fund can provide additional benefits like education assistance and scholarships when the eligible child graduates from college or high school.

If you are planning to consider investing in the Children’s Fund, it is ideally suited for those who have the following:

  • Long-term Investment Horizon: The investment horizon for this fund should be at least 5 years up to 15 years or longer
  • Capital Gains & Returns: Children’s Funds are ideal for those who want to invest in a long-term instrument that offers good returns. The investor should consider debt Vs. equity and look at past records as an indicator of what to expect in the long run. The higher the horizon, the better the chances of getting good returns, beating market volatility, expenses, and other costs.
  • Risk Profile: The risk profile of someone who wants to invest in a Children’s Fund should be moderate, meaning they should not worry about fluctuations or any volatility in the short term. Investors can opt for debt options if they want a safer option.
  • Asset Allocation: Given the risk, investors can choose an equity fund with a higher allocation in equity-linked schemes and the changes of giving a higher return but with equivalent risk. Similarly, the investor can also go for debt-focused funds that offer stable returns and lower risk.

Popular Childrens Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 3,589
  • 3Y Return
  • 24.31%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 1,343
  • 3Y Return
  • 21.40%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 10,177
  • 3Y Return
  • 19.15%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 366
  • 3Y Return
  • 18.71%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,114
  • 3Y Return
  • 18.29%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,129
  • 3Y Return
  • 17.81%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,129
  • 3Y Return
  • 17.81%

  • Min SIP Investment Amt
  • ₹ ₹ 200
  • AUM (Cr.)
  • ₹ 15
  • 3Y Return
  • 14.41%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 127
  • 3Y Return
  • 13.78%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 908
  • 3Y Return
  • 13.61%

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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