1.A children’s mutual fund is an investment option that specifically caters to children and their financial goals like higher education, college tuition or wedding expenses.
2. Children’s funds typically have a lock-in period, restricting withdrawals for a certain period, encouraging long-term discipline.
3.These include a mix of equity and debt, and investors can choose higher debt or higher equity depending on the risk profile and investment horizon.
4.T investment is done in the name of the child and is typically made by a parent or guardian for a minor.
5.Some funds offer deductions under Section 80C, and long-term capital gains (LTCG) may be tax-free up to a limit.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)