It’s time to celebrate Father’s Day this Sunday. A father can start financial planning from the very beginning while choosing a mutual fund scheme for their children. Here is the snapshot of schemes which are specially designed for children.
iStock
2/9
Special characteristics
These funds have a special characteristic. These schemes have a lock-in for at least 5 years or till the child attains age of majority whichever is earlier.
ETMarkets.com
3/9
ICICI Prudential Child Care Fund-Gift Plan
This scheme offered 43.20% return in the last one year. The investment objective of the scheme is generation of capital appreciation by creating a portfolio that is invested in equity and equity related securities and debt and money market instruments.
ETMarkets.com
4/9
SBI Magnum Children’s Benefit Fund-Investment Plan
The scheme gave 38.49% return in the last one year. The investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across sectors and market capitalizations. The scheme will also invest in debt and money market instruments with an endeavour to generate income.
ETMarkets.com
5/9
UTI Children’s Equity Fund
The scheme gave 32.46% return in the last one year. The objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across the market capitalization spectrum.
iStock
The other two schemes among the top five performers were – Aditya Birla SL Bal Bhavishya Yojna (32.17% return) and Tata Young Citizen Fund (30.07% return).
Getty Images
The next five funds in the category were – LIC MF Children’s Fund (28.15%), HDFC Children’s Gift Fund (27.80%), SBI Magnum Children’s Benefit Fund-Savings Plan (18.80%), Axis Children’s Gift Fund-No Lock in (17.90%), and Axis Children’s Gift Fund-Compulsory Lock in (17.90%)
iStock
UTI Children’s Hybrid Fund, the oldest scheme in the category, gave 16.32% return in the last one year. The objective of the scheme is to invest predominantly in debt and money market instruments and part of the portfolio into equity and equity related securities with a view to generating income and aim for capital appreciation.
Getty Images
Always choose the scheme that matches with your risk appetite, investment horizon and goal before making any investment decision.
