Financial planning is very important from the beginning for the better future of children. Keeping this in mind, HDFC Children’s Fund, a scheme run by HDFC Mutual Fund, has fulfilled the dream of many parents. This fund has been in existence for more than 23 years and during this time it has performed amazingly. The fund has given more than 38 times return since its launch to those who invest in lump sum. On the other hand, parents who started a monthly SIP of Rs 5000 for the better future of their children, have accumulated close to Rs 1.25 crore.
HDFC Children’s Fund launched
HDFC Children’s Fund 2 was launched on March 2021. Since its launch, this fund has given a return of 16.76 per cent per annum on lump sum investments, while those doing SIP have got a return of 16.2 per cent per annum in 23 years. In this, lump sum can be done with a minimum of Rs 100 and SIP with a minimum of Rs 100. The total AUM of this fund is Rs 9937.45 crore, while the expense ratio is 1.73 per cent.
Investing in Children’s Fund
HDFC Children’s Fund is an open-ended equity fund with a lock-in period of 5 years or till the child attains majority. The 5-year lock-in means that the investment is to be maintained for a long period while doing financial planning in the name of the children. The scheme invests at least 65-80% of the total investment in equity and equity-related options and the remaining amount is invested in debt and money market options. The scheme aims to generate high returns in the long term so that the financial goals set for the children can be achieved.
Funds in SIP
HDFC Children’s Fund was launched on 2 March 2021. SIP data for this fund is available for 23 years. For 23 years, this fund has been giving 16.2 percent annualized return to investors.
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In this sense, those who have done SIP of Rs 5000 in this fund from the beginning till now, would have Rs 1,22,99,207 accumulated now.
Annualized return of SIP in 23 years: 16.2%
Monthly SIP amount: Rs 5,000
Total investment in 23 years: Rs 13,80,000
Value of SIP after 23 years: Rs 1,22,99,207
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