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HDFC Mutual Fund Child Plan
HDFC Children's Fund is a solution-oriented scheme from HDFC Mutual Fund, built to grow a corpus for a child's future needs. Launched in January 2013, it has delivered 14.58% since inception, though the one-year return is currently 2.42%. The fund holds 65.88% in equity and manages ₹10,657.76 crore with a NAV of ₹323.77.
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Mutual Fund Child Plan
- HDFC Mutual Fund Child Plan
Highlights of HDFC Mutual Fund Child Plan
- Five-Year Lock-in: Units are locked for at least five years, or until the child reaches the age of majority, whichever comes first. This is the feature that separates the scheme from a standard aggressive hybrid fund.
- Low Expense Ratio: As of June 30, 2026, HDFC Children's Fund had an expense ratio of 1.03% for the Direct Plan and 1.79% for the Regular Plan, a difference of 0.76% points.
- ₹100 Minimum Across the Board: Minimum investment, additional investment, SIP and withdrawal all sit at ₹100. This is among the lowest entry points in the Children's Gift Fund category.
- Recent Performance: The fund delivered 2.42% over one year and 9.49% over three years, as of August 31, 2026. During the same period, its benchmark, NIFTY 50 Hybrid Composite Debt 65:35 Index (TRI), returned 0.89% and 8.09%, respectively.
- Insurance Cover Discontinued: The personal accident cover previously attached to this scheme has been withdrawn with immediate effect.
Key Information About HDFC Mutual Fund Child Plan
| Detail | Information |
| Fund House | HDFC Mutual Fund |
| Date of Launch | 2nd March 2001 |
| Total AUM | ₹10,657.76 Cr (as on 31 July 2026) |
| Fund Category | Hybrid: Aggressive Hybrid |
| Fund Benchmark | NIFTY 50 Hybrid Composite Debt 65:35 Index |
| NAV of the Fund | ₹323.77 (as on 22 September 2026) |
| Min. Investment | SIP ₹100 and Lumpsum ₹100 |
| Total Expense Ratio | 1.04% (Direct Plan) |
| Returns Since Inception | 14.58% |
| Plan Type | Direct |
| Risk Level | Very High |
| Risk Grade | Below Average |
| Return Grade | Average |
| Lock-in Period | 5 years or till child attains majority, whichever is earlier |
| Fund Managers | Chirag Setalvad, Anil Bamboli |
| Investment Objective | The scheme seeks to generate capital appreciation and income from a portfolio of equity and equity related instruments, and debt and money market instruments. |
Performance of HDFC Mutual Fund Child Plan
| Period | 1Y | 3Y | 5Y | Since Inception |
| Fund Returns | 2.42% | 9.49% | 10.98% | 14.58% |
The one-year figure reflects a weak recent stretch rather than the fund's longer record. The table below shows the gap against the category average.
Asset Allocation of HDFC Mutual Fund Child Plan
| Asset Type | Allocation |
| Equity | 65.88% |
| Others | 4.77% |
The scheme mandate places 65% to 80% of assets in equity, with the balance in debt and money market instruments. Current equity exposure of 65.88% falls at the lower end of that band.
Within the equity portion, the fund holds a large-cap bias.
| Market Cap | Allocation |
| Large Cap | 37.8% |
| Mid Cap | 6.9% |
| Small Cap | 21.2% |
As of July 2026, large-cap stocks account for the highest allocation within the fund’s equity portfolio.
Top 10 Holdings of HDFC Mutual Fund Child Plan
| Company Name | Portfolio Weight |
| ICICI Bank Ltd. | 7.07% |
| HDFC Bank Ltd.£ | 6.01% |
| Larsen and Toubro Ltd. | 3.74% |
| State Bank of India | 3.08% |
| Reliance Industries Ltd. | 2.98% |
| Kotak Mahindra Bank Limited | 2.93% |
| eClerx Services Limited | 2.69% |
| Aster DM Quality Care Limited | 2.67% |
| 7.18% GOI MAT 140833 | 3.69% |
| 7.1% GOI MAT 080434 | 2.95% |
The top 10 equity holdings accounted for 35.01% of the portfolio, while the top five accounted for 23.17%. Four of the top 10 holdings were classified as Banks. ICICI Bank became the largest holding at 7.03%, overtaking HDFC Bank at 6.39%.
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Invest ₹8K/Month YOU GET ₹80 Lakhs* For Your Child
Invest ₹5K/Month YOU GET ₹50 Lakhs* For Your Child
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Expense Ratio, Exit Load and Taxation of HDFC Mutual Fund Child Plan
| Category | Details |
| Expense Ratio (Direct) | 1.03% |
| Direct Plan Advantage | Up to 0.77% extra returns |
| Entry Load | Not applicable |
| Exit Load | Nil |
| Short Term Capital Gains (STCG) | Taxed at 20% if redeemed within 1 year |
| Long Term Capital Gains (LTCG) | Gains above ₹1.25 lakh in a financial year taxed at 12.5% after 1 year |
At 1.03%, the expense ratio is almost exactly at the category average and well below what most children's schemes charge. On a ₹10 lakh corpus this works out to roughly ₹10,300 a year.
FAQs
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What is HDFC Mutual Fund Child Plan?
HDFC Children's Fund is an open-ended solution-oriented scheme built to create a corpus for a child's future. It invests 65% to 80% in equity with the balance in debt and money market instruments. -
What is the lock-in period on this fund?
Units are locked for at least five years, or until the child reaches the age of majority, whichever comes first. For SIP investors, each instalment locks separately from its own investment date. -
What happens to the investment when the child turns 18?
When a child turns to an adult, investments are held until the portfolio is updated. To continue the transaction process, the investor should provide new KYC with the updated bank information. Investors can also explore suitable alternatives by verifying these conditions with other mutual fund child plans, children's gift funds, etc., before investing. -
Can this fund be used to plan for a child's education?
The scheme is built for long-term children's financial needs and may be considered for goals such as higher education. Investors can also explore different child education plans and compare options based on their financial objectives and horizon.
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.