New Delhi: The middle-class concern of saving money for long-term financial goals could be achieved if investment made is planned as per the needs and dedicated goals. Goals such as building a dream house, a large retirement corpus, and children’s hefty education fees are the three major financial goals that the middle class households usually have to meet.
The solutions to the fulfillment of these goals are solution-oriented mutual funds. These are those funds that help investors target their investments to meet their needs. They involve a mix of asset classes, such as equity and debt, to strike a balance between growth potential and risk management. Fund managers tailor these investment approaches, considering factors like the risk tolerance aspects of an investor, their financial objectives, and expected returns.
Retirement funds and children’s funds are the funds typically involved under the above-stated funds. In an entire mutual fund investment, children’s funds constitute a minute ratio. There exists a total of 12 children’s fund schemes with total assets under management (AUM) constituting Rs 23523 crore. On the contrary, there are about 29 retirement schemes/funds with total assets under management (AUM) constituting around Rs 31000 crore.
Best Children’s Mutual Funds:
Children’s mutual funds are the funds that help retail investors to achieve specific children’s education finance needs. It has a lock-in period of a minimum of 5 years. The following is a list of the best children’s mutual funds that gave high returns on the investment with a more than 20 percent CAGR (compound annual growth rate).
| Mutual Funds | 5-Year Return (%) |
| HDFC Children’s fund | 21.45 |
| ICICI Prudential Child Care Fund—Gift Plan | 21 |
| Tata Young Citizens Fund | 21.54 |
| UTI Children’s Equity Fund | 20.39 |
As the table shows, HDFC Children performed exceptionally well in the segment, significantly boosting the investment by around 22 percent in the time period of a span of five years. Other schemes include the ICICI Prudential Child Care Fund, Tata Young Citizens Fund, and UTI Children’s Equity Fund, with more than 20 percent CAGR returns
With the power of compounding, these funds have given bumper returns on the investment, significantly doubling the investment amount in just 5 years. However, historical returns do not guarantee future returns. Investment in mutual funds is always subject to market risks. One should always consult the investment expert before they made any investment.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
The article explores how middle-class families can achieve long-term financial goals like children’s education and retirement through strategic mutual fund investments. It highlights the performance of top-performing children’s mutual funds, such as HDFC Children’s Fund and ICICI Prudential Child Care Fund. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
