To plan for a better financial future for your children, starting regular investments can be a wise decision. For this, you can invest in children’s plans specifically designed for their future. Some of the best children’s funds in the country have provided returns of up to 19% in the last 5 years. Below are the complete details of these funds. Although past returns cannot guarantee similar performance in the future, they do give an idea of the success of the fund’s investment strategy and management.
Throughout this article, we will share all the details regarding the Top 5 Funds and Their 5-Year Returns in India for a Secure Future.
Children’s Funds with Best Performance in 5 Years
We have gathered data on the best-performing children’s funds over the last five years from the Association of Mutual Funds in India (AMFI). These figures are updated till 25 November 2024. Only funds with assets under management (AUM) greater than Rs 300 crore have been included.
- Tata Young Citizens Fund
- 5-year return (Direct Plan): 19.33%
- Benchmark Index: Nifty 500 Total Return Index
- Assets under Management (AUM): Rs 363.96 crore
- HDFC Children’s Gift Fund
- 5-year return (Direct Plan): 19.32%
- Benchmark Index: Nifty 50 Hybrid Composite Debt 65:35 Index
- Assets under Management (AUM): Rs 9,803.90 crore
- UTI Children’s Equity Fund
- 5-year return (Direct Plan): 18.29%
- Benchmark Index: Nifty 500 Total Return Index
- Assets under Management (AUM): Rs 1,112.78 crore
- ICICI Prudential Child Care Fund – Gift Plan
- 5-year return (Direct Plan): 17.23%
- Benchmark Index: Nifty 50 Hybrid Composite Debt 65:35 Index
- Assets under Management (AUM): Rs 1,315.40 crore
- Aditya Birla Sun Life Bal Bhavishya Yojana
- 5-year return (Direct Plan): 14.43%
- Benchmark Index: Nifty 500 Total Return Index
- Assets under Management (AUM): Rs 1,081.64 crore
Consider the Risk Before Investing
On the riskometer, the risk level for all the children’s funds listed above is very high. Even the hybrid funds have been classified as very high risk due to their equity exposure.
Get Complete Information About the Scheme
Before deciding to invest in any children’s fund, make sure to thoroughly research the scheme. If the fund is a hybrid scheme, check the ratio of equity to debt. Generally, a higher debt component makes the fund safer but results in lower returns.
The long-term returns of a scheme should also be compared with the returns of its benchmark index. This will show how effective the scheme’s investment strategy has been. However, it is important to remember that past performance cannot guarantee future returns.
Lastly, evaluate your risk profile before making any investment decision. Keep in mind that the full benefit of mutual funds is typically realized only with long-term investments.
Disclaimer:
The past performance of mutual funds is not indicative of future results. Investments are subject to market risks, and it’s important to assess your risk tolerance before making any investment decisions. Please consult a financial advisor for personalized advice. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. Please consult a financial advisor for better results.