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Children’s Gift Funds are solution-oriented mutual funds especially designed to meet children’s future financial needs like education, marriage expenses, etc. These can be categorized as normal ‘Balanced Mutual Funds’ or ‘Hybrid Funds’. These funds invest in both Equity (shares) and Debt Instruments (Fixed Income Securities).
Let us know about some facts related to Children’s gift Mutual Funds!
- Lock-in Period – Most child funds offer an optional lock-in facility. Investments will be locked-in till the child attains 18 years of age.
- Who can invest? – Investments have to be made in the name of your minor kid only. Generally, Parents / Guardians / Grandparents/relatives can invest in child gift funds in the name of a minor child.
- Expense Ratio & Exit Load – Do check out the expense ratio and exit loads of these funds.
- Documentation: KYC documents about the child & investor (parent/guardian) have to be submitted while making new investments. At the time of redemption or when the child becomes ‘Major’, fresh and additional KYC documents need to be submitted.
Here we have prepared a list of some of the best solution-oriented children’s gift funds so that when you plan for retirement, you can easily pick from these!
To receive a free advisory on Investments In Mutual Fund, contact our executives asap!
ICICI Prudential Child Care Fund - Gift Plan
It is a children's mutual fund run and managed by ICICI Prudential Mutual Fund House. The fund has 67.43% investment in Indian stocks of which 53.57% is in large-cap stocks, 7.85% is in mid-cap stocks, and 1.86% in small-cap stocks.
Fund also has 20.39% investment in Debt of which 8.7% in Government securities, and 8.79% in funds invested in very low-risk securities.
The fund size of the scheme is around Rs. 859 crores and it charges a total expense ratio of around 2.37%. The fund does not charge any exit load.
The prime objective is to generate capital appreciation by creating a portfolio that is invested in equity and equity-related securities and debt and money market instruments.
LIC MF Children's Fund
It is a children's mutual fund run and managed by LIC Mutual Fund House. The fund has 86.88% investment in Indian stocks of which 64.11% is in large-cap stocks, 10.42% is in mid-cap stocks, and 4.52% in small-cap stocks.
Fund also has 11.23% investment in Debt of which 11.23% in Government securities.
The fund size of the scheme is around Rs. 14 crores, and it charges a total expense ratio of around 2.46%. The fund does not charge any exit load.
The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity-related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.
SBI Magnum Children's Benefit Fund - Savings Plan-Growth
It is a children's mutual fund run and managed by SBI Mutual Fund House. The fund has a 20.93% investment in Indian stocks of which 1.93% is in large-cap stocks, 1.74% is in mid-cap stocks, and 7.1% is in small-cap stocks.
Fund also has 43.17% investment in Debt of which 22.53% in Government securities, and 20.64% in funds invested in very low-risk securities.
The fund size of the scheme is around Rs. 87 crores and it charges a total expense ratio of around 1.24%. The fund has an exit load equal to 3.0% of the sell value, if the fund is sold before 365 days, and 2.0% of the sale value if the fund is sold before 730 days. and 1.0% of the sell value if the fund is sold before 1095 days. There are no other charges.
The primary investment objective of the scheme is to provide the investors an opportunity to earn regular income predominantly through investment in debt and money market instruments and capital appreciation through an actively managed equity portfolio.
To get more details about the fund you can refer to the fund fact sheet or you can get in touch with us. Call us on- 0612-6604453 or mail us at [email protected].
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).