Mutual Funds SIP: The returns earned from investments made in children’s funds are tax-exempt. The charges are also kept to a minimum to maximize the benefits of indexation.
Mutual Funds SIP has fulfilled the dreams of many people. SIP can play an important role in fulfilling not only your dreams but also the dreams of your children. If your child is young right now, you can start SIP for him right now. By doing this, your child will not face any problem of money later for his birth or any other need like education and relocation. Let us tell you that mutual fund companies also run children fund schemes specially made for children.
There are many different benefits available by investing in children’s fund
Let us tell you that children’s funds have many great benefits. The returns received from the investment made in children’s funds are tax exempt. In this, the charges are also levied as low as possible to maximize the benefits of indexation. If you invest in children’s funds, then you can also get tax exemption on your income under section 80C. Let us tell you that children’s funds come with a lock-in period of 5 years. Keep in mind that a part of the investment made in such funds is also invested in the stock market, so there is a lot of market risk in such funds as well.
This fund has given the highest returns in the last 10 years
Similarly, the direct plan of HDFC Childrens Gift Fund has given a return of 14.56 percent in the last 10 years, which is the highest in this category. This fund has also given the highest return of 19.32 percent in the last 5 years. In the last 3 years, the direct plan of SBI Magnum Childrens Benefit Fund has given the highest return of 19.14 percent. Mutual fund companies invest the investments coming in this category of funds in the stock market as well as bonds.
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