Children Mutual Fund
Children Plan:Every parent’s dream is to give their child every comfort which they did not get. But the first step to fulfill this dream is to start investing at the right time. We often see that people make a piggy bank in the name of their children or keep aside the money received on their birthday. This is a good start, but do you know that there are some schemes through which you can create a fund worth crores for your children? Experts believe that for major goals like education or marriage of children, it is the wisest decision to create a well-planned Children Fund right from their birth. This is not a simple thing, but a successful method tested by time, the complete mathematics of which we are explaining to you today.
Fundus is designed for children
Actually, in the world of mutual funds, some funds are designed for children. One such well-known name is ICICI Prudential Children Fund. The history of this scheme shows that it has given excellent returns to investors in the long run. It is an open-ended scheme designed with the intention of laying a strong financial foundation for children. The special thing about this is that there is a lock-in period of at least five years, or until your child becomes an adult (18 years).
Market Beating Strategy
The biggest strength of this children fund is its Adaptive Investment Approach. Like other funds, they do not stick to any one formula, but keep changing their bets depending on the mood of the market. That is, when the market seems stable and safe, this fund can adopt a defensive stance and invest a large portion (up to about 35%) in debt instruments.
And as soon as the environment again indicates bullishness, fund managers take an aggressive stance by increasing their stake in equity without any delay. This flexibility has two benefits: first, higher earnings at good times; And second, when there are fluctuations in the market, it has less impact on the portfolio. This ‘smart’ approach is perfect for parents who want a balance of growth, safety and active management of their investments.
How have the funds performed?
You will be surprised to see the figures. If a person had invested a lump sum of ₹10 lakh in this ICICI Prudential Children Fund on 31st August 2001, then by 31st October 2025, this amount would have increased to approximately ₹3.3 crore. This is a compound annual growth rate (CAGR) of 15.58%, which is much higher than the benchmark index’s return of 13.46%.
The figures of SIP (Systematic Investment Plan) are even better. If one had done a SIP of ₹10,000 every month from the beginning, the total investment of ₹29 lakh would have grown to a whopping corpus of ₹2.2 crore by October 31, 2025! Even in the last 15 years, this fund has consistently outperformed its benchmark.