If you are looking for a best SIP plan then today’s article is for you. Especially if you are worried about your child’s future then you should definitely kick start from today Every parent wants their child to be financially secure. So after birth, money started to be saved in the name of the child. So that studies or other subjects do not stop due to lack of money.
SIP for children
Child mutual funds are the best to meet such goals. There are different types of mutual funds to meet specific goals. Such as Children Gift Fund, Children Asset Plan, Children’s Career Plan etc. These are mostly hybrid mutual funds. A portion of the capital is invested in secured debt instruments or debt bonds that lend to private or public entities for interest income. They again invest in stocks that offer higher returns than debt bonds.
A mutual fund account can be opened in the name of any child below the age of 18 years. However, unlike a joint bank account, joint investment cannot be made in it. The parent can invest in the name of the child through SIP every month. This will continue until the child is 18 years old. It will be closed after that. However, a fund of Rs 1 crore can be built for children with only Rs 5,000 per month. Let’s take a look at all the details of the best SIP for children.
HDFC Children’s Fund
HDFC Children’s Fund can fetch 16.2% per annum returns through SIPs. The portfolio of HDFC Children Fund includes companies like HDFC Bank, ICICI Bank, and Reliance Industries. The HDFC Child Mutual Fund can raise a fund of Rs 1.22 crore in 23 years through an SIP of Rs 5,000 per month.
ICICI Prudential Child Care Fund
ICICI Prudential Child Care Fund has given around 14.76% returns in the last 23 years. A fund of Rs 1 crore can be created in 23 years under the help of SIP of Rs 5000 per month. Investing in ICICI Prudential Child Care Fund for a long period of time can yield a return of 15.94% per annum.
