Mutual Fund Schemes for Kids: As soon as the little guest comes in the house, people start cherishing the dreams of his future. Whether it is a boy or a girl child, people start thinking from the very beginning for the expenses ranging from education to marriage. For this, they also start saving a small part of their earnings. However, it is better to save or invest in such instruments or options where the returns are better and the risk is also less.
Savings made for the future of children are not of short duration. Generally people invest for 5, 10 years or more. Equity is one such investment option in which the risk reduces with time. It has also been proved historically that equities give the best returns in the long term. Financial advisors also suggest that equities are the best from the point of view of returns in the long term.
To invest in good stocks, investors must have the understanding of the stock market, apart from this, they should also have the expertise to select companies with good growth. If this is not possible, then investing in equity mutual funds with a good track record without any hassle for a long time can create a sufficient corpus for children’s education or marriage. It has been historically proven that the risk associated with investing in equity tends to reduce over time. Some mutual fund companies have launched some schemes especially for children. Come, let’s take a look at them.
HDFC Children’s Gift Fund
HFDFC Mutual Fund launched two funds in February 2001 – HDFC Children’s Gift Fund – Savings Plan which was discontinued on October 18, 2017 and HDFC Children’s Gift Fund – Growth Plan. HDFC Children’s Gift Fund – Growth Plan Key. This fund has given a return of 14.15% in 6 months, 21.36% in 2 years and 12.76% in 5 years.
SBI Magnum Children’s Benefit Fund – Investment Plan
This equity oriented mutual fund scheme designed for children’s future has given 7.84% returns in 6 months, 4.59% in 1 year and 51.27% in 2 years.
ICICI Prudential Child Care Fund – Direct Plan
The performance of ICICI Pudential Child Care Fund – Direct Plan (ICICI Prudential Child Care Fund – Direct Plan) has also been satisfactory. This fund has given a return of 9.50% in 6 months, 2.69% in 1 year and 17.95% in 2 years. The 5 year return of this fund has been 10.09 percent.