There are many investment options for children. You can invest in options like PPF or FD for your child. But you will get limited returns in these. Investing in mutual funds is a great way to go now as compared to these debt options. You can also invest in mutual funds for children.
To prepare for the future for children, here are 5 such mutual fund schemes, which will work for every goal. Then whether you want to add money for their marriage or for higher education. Know the details of these five schemes.
SBI Magnum Children’s Benefit Fund
SBI Magnum Children’s Benefit Fund is rated 4 Star by Value Research. The 1-year return of this fund is 25.5% and the 6-month return is 12.5%. You will not get this much return from FD or PPF. Having 4 star rating, this fund is also very safe. This is an aggressive hybrid mutual fund scheme, which is a mid-sized fund in its category.
UTI CCF Investment Plan
The one year return of UTI CCF Investment Plan has been 23.27 per cent, while in 6 months this scheme has given 8.22 per cent return to the investors. Majority of the fund’s money is invested in financial, technology, services, FMCG and automobile industries. The top 3 stocks held by this fund include Infosys, HDFC and ICICI Bank.
HDFC Children’s Gift Fund
HDFC Children’s Gift Fund is rated 4 Star by Value Research. The fund has given investors close to 43.5 per cent returns in one year, while its 6-month returns have been 18.23 per cent. 67.10 percent of this fund is invested in paisa stocks and 19.07 percent in debt instruments. HDFC Children Gift Fund is a mid-sized fund in its category with an AUM of Rs 4,667 crore.
Axis Children’s Gift Fund
Axis Children’s Gift Fund has been rated 3 Star by Value Research. The one-year return of this fund has been close to 36.3 per cent. On the other hand, Axis Children’s Gift Fund has given a return of around 13.3 per cent in 6 months. The fund has major equity holdings in the financial, technology, automobile, services and chemical sectors. It invests 65% of its money in equities.
LIC MF Children’s Fund
LIC MF Children’s Fund has been rated 3 Star by Value Research. The one-year return of this fund has been close to 29.6 per cent. Whereas LIC MF Children’s Fund has given returns around 7.3 per cent in 6 months. HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd. and Tata Consultancy Services Ltd. are the major companies in which LIC MF Children’s Fund has invested the most. The sectors where it invests the most in equities include financials, technology, fast moving consumer goods, healthcare and energy. With the five schemes mentioned here, you can secure the future of your children.
