Best Mutual funds for Children to Invest-2020

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Always set your financial goals and create an investment plan to get them. Since you are planning to invest through SIP to achieve long terms financial goals like child education and marriage, you can consider investing in equity mutual fund schemes according to your risk profile. Since you have not shared your risk profile, it is not possible for you to choose specific category plans. But we have selected some common plans for a better return in the future.

Why You Should Invest for your Children now?

  • A child can achieve his or her aspirations with the help of these fund schemes without these sacrifices due to financial constraints.
  • If your child’s mutual fund scheme is a debt-based plan, you can enjoy large scale tax efficiency. When you invest in your child’s name, you do not have to worry about paying taxes for many years. Therefore, they are very good for long-term investment. Unless you redeem a fund unit, you will not have to face any tax implication. In addition, indexation benefit will actually make your tax almost zero when the time is up.
  • When you want to take a children’s gift mutual fund scheme, you can enjoy a custom made or tailor-funded fund scheme.
  • With the Children’s mutual funds schemes, different goals can be achieved for different stages of the child. For example, a child’s higher education, health care needs, wedding plans, home buying plans, buying a car, etc.
  • Mutual funds for encouraging individuals to invest money for long-term development. Such a long-term benefit from the schemes will help their children grow.

Key Points to remember for Children’s mutual funds.

  • These are open-ended mutual fund equity scheme.
  • Invests in both Equity and Debt instruments in India.
  • Most Children’s mutual funds provide an alternative lock-in feature. It enables the investor to ensure that until the child turns 18, the investment will be kept safe.
  • This scheme is available for the lump sum and SIP investment as well offers both growth and dividend option
  • In order to invest in a gift mutual fund, the investor should submit some KYC documents. KYC documents are details about children and investors, that is, parents or guardians. The additional KYC documents are required to be redeemed and/or at the time the child receives the age of maturity.

Best Children’s mutual funds to Investment.

HDFC Children’s Gift Fund

Benchmark IndexNIFTY 50 Hybrid Composite Debt 65:35
Value Research Rating (Out of 5)4 Star
RiskometerModerately High
Assets under management (Rs. Crores)Rs 2,506 crore (As on Jan 31, 2019)
Managed byChirag Setalved & Amar Kalkundrikar
Options AvailableGrowth Option and Dividend Option (Payout & Re-investment)
Plans AvailableRegular Plan and Direct Plan
Last 1 Year Return-0.44%
Last 3 Years Return+13.30%
Last 5 Years Return+15.24 %
Last 10 Years Return+20.04%
For Invest OnlineClick Here

ICICI Prudential Child Care

Benchmark IndexNIFTY 50 Hybrid Composite Debt 65:35
Value Research Rating (Out of 5)3 Star
RiskometerModerately High
Assets under management (Rs. Crores)Rs. 601 crore (As on Jan 31, 2019)
Managed byManish Banthia & Aswani jain
Options AvailableGrowth Option and Dividend Option (Payout & Re-investment)
Plans AvailableRegular Plan and Direct Plan
Last 1 Year Return-0.48%
Last 3 Years Return+11.64%
Last 5 Years Return+15.64%
Last 10 Years Return +18.47%
For Invest OnlineClick Here

UTI Children’s Career Fund-Savings Plan

Benchmark IndexCRISIL Short Term Debt Hybrid 60+40 Fund
Morningstar Rating (Out of 5) 3 Star
RiskometerModerately High
Assets under management (Rs. Crores)Rs. 3,612 crore (As on Jan 31, 2019) )
Managed byAmandeep S. Chopra & Kaushik Basu
Options AvailableGrowth Option and Dividend Option (Payout & Re-investment)
Plans AvailableRegular Plan and Direct Plan
Last 1 Year Return-01.44%
Last 3 Years Return+08.68%
Last 5 Years Return+11.82%
Last 10 Years Return+11.97%
For Invest OnlineClick Here

TATA Young Citizens Fund

Benchmark IndexCRISIL Hybrid 25+75 Aggressive Index
RiskometerModerately High
Assets under management (Rs. Crores)Rs. 184 crore (As on Jan 31, 2019)
Managed byAkhil Mittal, Sonam Udasi & Ennette Fernandes
Options AvailableGrowth Option and Dividend Option (Payout & Re-investment)
Plans AvailableRegular Plan and Direct Plan
Last 1 Year Return-08.95%
Last 3 Years Return+06.01%
Last 5 Years Return+09.69%
Last 10 Years Return+11.50%
For Invest OnlineClick Here

LIC MF Children’s Gift Fund

Benchmark IndexCRISIL Hybrid 35+65 Aggressive
RiskometerModerately High
Assets under management (Rs. Crores)Rs. 14 crore (As on Jan 31, 2019)
Managed byMarzban Irani & Yogesh Patil
Options AvailableGrowth Option and Dividend Option (Payout & Re-investment)
Plans AvailableRegular Plan and Direct Plan
Last 1 Year Return-05.54%
Last 3 Years Return+06.26%
Last 5 Years Return+08.74%
Last 10 Years Return+09.69%
For Invest OnlineClick Here

Axis Children’s Gift Fund

Benchmark IndexNIFTY 50 Hybrid Composite Debt 65:35
RiskometerModerately High
Assets under management (Rs. Crores)Rs. 382 crore (As on Jan 31, 2019)
Managed byR. Shiva Kumar & Ashish Naik
Options AvailableGrowth Option and Dividend Option (Payout & Re-investment)
Plans AvailableRegular Plan and Direct Plan
Last 1 Year Return+0.17%
Last 3 Years Return+08.47%
Last 5 Years ReturnLunch Date: Dec 08, 2015
Last 10 Years ReturnLunch Date: Dec 08, 2015
For Invest OnlineClick Here

Conclusion: These are the 6 best mutual funds for Children’s mutual funds (by past Performance) aims to invest for a better future of your child. If you are moderate to high-risk taker, you can consider investing in these mutual fund schemes for a long time frame you may get a good return. Mutual funds investment is subject to risks of the market. Any mutual fund listed in the document does not guarantee fund performance or its inherent goodwill. Before investing, read all the mutual fund document well, When designing a mutual fund portfolio, specific needs of investment and other factors should be kept in mind.

Thanks for reading till the end. If you enjoyed reading this article do not forget to like share and comment. This article is only for information propose. We advise you to read all scheme related documents before taking any investment decisions. Till the next time stay healthy and wealthy also stay tuned to bzlifestyle.com .