Mart Child Investment Plan: Invest money here from the birth of the child, a fund of Rs 3 crore will be created..
Children Plan: Every parent dreams of giving their children all the comforts and luxuries they never had. But the first step to fulfilling this dream is to start investing at the right time. We often see people creating piggy banks in their children's names or setting aside money received on their birthdays. This is a good start, but did you know that some schemes can help you create a fund worth crores for your children? Experts believe that creating a well-planned children's fund from their birth is the wisest decision for major goals like their education or marriage. This is not just a pipe dream, but a time-tested, successful method, the full mathematics of which we are explaining to you today.
Funds Designed for Children
In fact, in the world of mutual funds, some funds are designed specifically for children. One such well-known name is the ICICI Prudential Children's Fund. This scheme's history shows that it has delivered excellent returns to investors over the long term. It's an open-ended scheme designed to lay a strong financial foundation for children. A key feature is its lock-in period of at least five years, or until your child reaches the age of majority (18).
Market-Beating Strategy
The biggest strength of this children's fund is its adaptive investment approach. Unlike other funds, it doesn't adhere to a single formula; instead, it shifts its bets based on market sentiment. This means that when the market appears stable and secure, the fund can adopt a defensive approach and invest a significant portion (up to 35%) in debt instruments.
And as soon as the market signals a rebound, the fund managers quickly adopt an aggressive approach by increasing their equity exposure. This flexibility has two benefits: first, it generates higher returns during favorable times; And second, when markets fluctuate, the portfolio is less impacted. This "smart" approach is perfect for parents who seek a balance of growth, protection, and active management in their investments.
How have the funds performed?
The figures will astonish you. If someone had invested a lump sum of ₹10 lakh in this ICICI Prudential Children's Fund on August 31, 2001, by October 31, 2025, the amount would have grown to approximately ₹3.3 crore. This represents a compound annual growth rate (CAGR) of 15.58%, far exceeding the 13.46% return of the benchmark index.
The SIP (Systematic Investment Plan) figures are even more impressive. If one had done a monthly SIP of ₹10,000 from the beginning, the total investment of ₹29 lakh would have grown into a massive corpus of ₹2.2 crore by October 31, 2025! Even over the past 15 years, this fund has consistently outperformed its benchmark.
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