five schemes are bestoption to invest for children future
Well, there are many investment options for children. You can also invest in options like PPF or FD, but these will give you limited returns. Investing in mutual funds now is a great way to go as compared to these debt options.
New Delhi. It is important to secure the future of children financially so that their needs can be met in the coming times. But some precautions should also be taken before investing. Instead of investing in haste, planning should be done with a cool mind. While doing this, you have to keep in mind that at what stage of age the child will need what. Plan should be made according to his goals.
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Well, there are many investment options for children. You can invest in options like PPF or FD for the child, but these will give you limited returns. Investing in mutual funds now is a great way to go as compared to these debt options. There are 5 such mutual fund schemes for children, which will work for every goal.
These are better schemes for children
1. LIC MF Children’s Fund
Value Research has given 3 star rating to LIC MF Children’s Fund. The return for the year 2020 is around 29.6 per cent. Whereas LIC MF Children’s Fund has given returns around 7.3 per cent in 6 months. LIC MF Children’s Fund has been the biggest pool of money from giants like HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd. and Tata Consultancy Services Ltd. Sectors where it invests most in equities include financials, technology, fast moving consumer goods, healthcare and energy.
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2. HDFC Children’s Gift Fund
HDFC Children’s Gift Fund has been given a 4-star rating by Value Research. It has given returns of around 43.5 per cent to investors in a year. Its return for the last 6 months has been 18.23%. 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.
3. UTI CCF Investment Plan
The one-year return of UTI CCF Investment Plan has been 23.27 per cent. The scheme has given 8.22 per cent returns to the investors in the last 6 months. Majority of the fund’s money is invested in financial, technology, services, FMCG and automobile industries. UTI holds the top 3 stocks of Infosys, HDFC and ICICI Bank.
4. SBI Magnum Children’s Benefit Fund
Value Research has given a 4-star rating to SBI Magnum Children’s Benefit Fund. The 1-year return of this fund is 25.5%. The returns for the last 6 months have been 12.5%. With 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.
5. 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 around 36.3 per cent. Axis Children’s Gift Fund has given returns 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 per cent of its money in equities.
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