Planning for a child’s secure future could be a difficult task. Almost every parent tries to create a strong financial cushion for their child, but in the end, they find their funds insufficient.
At the time of creating a strong financial backup plan for the child, it is critical to make the right investment choices at right time.
Read on, to know the child investment plans.
There is no better gift that a parent can give to their child, than the promise of a secure future. There are critical aspects that a parent should never ignore like the rising cost of education, stationary, books, medical expenses, etc.
Here are some of the best saving child investment plans:
- UTI CCF – Investment Plan – Growth Direct
- Tata Young Citizens’ Fund Direct-Growth
- HDFC Children Gift Fund Direct Plan
- Axis Children’s Gift Direct No Lock in Growth
- SBI Magnum Children’s Benefit Fund Direct-Growth
- Aditya Birla Sun Life Bal Bhavishya Yogna Direct Growth
- LIC MF Children Gift Fund Direct Plan
Child investment plans
1. UTI CCF – Investment Plan – Growth Direct
About Fund
The fund is investing predominantly in equity and equity-related instruments across market capitalization. The fund has invested 98.21% in stocks, 0.12% in debt, and the remaining 1.66% in cash.
The fund has a diversified portfolio that consists of 55 stocks. The fund follows a growth style of investing which means that the fund invests in stocks with high growth potential.
The fund has given consistent performance over the period. Parents who want to invest in a child investment plan can consider this as one of the options.
2. Tata Young Citizens’ Fund Direct-Growth
About Fund
The fund is investing predominantly in equity and equity-related instruments across market capitalization. The fund has invested 97.88% in stocks and 2.12% in cash.
The fund has a diversified portfolio that consists of 55 stocks. The fund has given consistent returns with lower volatility. Parents can consider this plan as one of the child’s investment options to save for their child’s future.
3. HDFC Children Gift Fund Direct Plan
About Fund
The fund is investing has invested in different asset classes including equity and debt. The fund has invested 66.88% in stocks, 24.67% in debt, and the remaining 8.45% in cash.
The fund has a diversified portfolio which consists of 46 stocks and 16 bond holdings. The fund follows a growth style of investing which means that fund invests in stocks with high growth potential.
The fund has given consistent performance over the different trailing periods.
4. Axis Children’s Gift Direct No Lock in Growth
About Fund
The objective of the fund is to generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity-related instruments.
The fund has invested 70.08% in stocks, 18.84% in debt, and the remaining 11.08% in cash.
The fund has diversified its investment in different asset classes to minimize the risk and maximize the returns. The fund’s focus is to reduce volatility and enhance returns.
5. SBI Magnum Children’s Benefit Fund Direct-Growth
About Fund
The objective of the fund 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.
The fund has invested 22.25% in stocks, 48.05% in debt, and the remaining 29.67% in cash. The fund has very low volatility as the major portion of the money is invested in debt and debt-related instruments.
Also, the fund holds AAA-rated quality bonds. The fund is good to invest for a child’s future as the volatility is low and has delivered good returns.
6. Aditya Birla Sun Life Bal Bhavishya Yogna Direct Growth
About Fund
The investment objective of the Wealth Plan is to seek the generation of capital appreciation by creating a portfolio that is predominantly investing in equity & equity-related securities and debt and money market instruments.
The fund has invested 98.64% in stocks and 1.36% in cash. The fund has invested across sectors and follows a growth style of investing with a major portion invested in large-cap companies.
Parents planning to save for their child’s future can consider investing in this fund.
7. LIC MF Children Gift Fund Direct Plan
About Fund
The primary investment objective of the fund 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.
The fund has invested 86.36% in stocks, 3.82% in debt, and the remaining 9.82% in cash. The fund is a consistent performer and has delivered good returns over the period.
All the above-mentioned plan has a lock-in period for investment for children having a lock-in for at least 5 years or till the child attains the age of majority, whichever is earlier.
This also provides you consistency in your investment journey.
Conclusion
With the rising cost of education and other related expenses, parents need to save and invest dedicatedly for their child’s bright future.
