Eligibility Criteria To Invest in Children's Gift Funds
To invest in Children’s Gift Mutual Funds, the following eligibility rules apply:
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The investment must be made in the name of a minor child.
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Only parents or legal guardians are authorised to invest on behalf of the child.
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The fund ownership is transferred to the child once they reach the age of 18 years, subject to KYC completion.
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Essential documents like the child’s birth certificate and the guardian’s KYC documents must be submitted at the time of investment.
Benefits of Children's Mutual Fund Plans
Investing in Children’s Gift Funds offers a range of benefits for parents aiming to build a stable and secure future for their children:
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Long-Term Wealth Creation: By investing in both equity and debt markets, these funds provide opportunities for steady capital appreciation over the years.
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Goal-Based Planning: These funds help you plan for key life stages—schooling, college fees, overseas education, marriage, or medical needs.
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Promotes Investment Discipline: Lock-in periods discourage frequent withdrawals, ensuring that the corpus grows uninterrupted.
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Segmented Financial Planning: Enables parents to track investments for specific child-related goals more effectively.
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Tax Efficiency: Returns are taxed only upon redemption, and debt-oriented variants benefit from indexation.
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Tailor-Made Options: Many AMCs allow customisation based on your goals, time horizon, and risk tolerance.
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Automatic Transition: When the child turns 18, the fund legally transfers to them, offering financial freedom for adult life plans.
Types of Children’s Gift Mutual Funds
Children’s funds fall under the category of hybrid or balanced funds, and are classified as:
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Hybrid Equity-Oriented Funds
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Hybrid Debt-Oriented Funds
Conclusion
Children’s Gift Mutual Funds are a thoughtful and strategic way to invest in your child’s future. With a blend of capital growth potential and financial discipline, these funds can help build a strong financial foundation over time. Whether it’s higher education, career aspirations, or life milestones, these funds ensure you are financially prepared. Start early, stay invested, and watch your small contributions grow into a meaningful gift for your child’s tomorrow.