Children’s Gift Mutual Fund is a type of mutual fund that provides financial benefits to children going through various life events. Financial assistance may include wedding expenses, education finances, and other related needs. It also manages long-term capital appreciation which is then categorized into hybrid funds or balanced mutual funds. The endowment fund is a combination of debt and equity instruments where debt includes fixed income securities and equity includes equity.
CHILDREN’S GIVING FUND: ELIGIBILITY
The fund is constituted in the name of the minor child by the parents or legal guardians.
CHILDREN’S DONATION COMMON FUND: CLASSIFICATION
Since the funds are categorized into equity-focused hybrid funds and debt-focused hybrid funds, they tend to have both debt and equity exposure.
If the equity funds have an exposure above 60%, they are called hybrid equity funds, while if the debt exposure of the funds exceeds 60%, they are called hybrid debt funds.
CHILDREN’S DONATION COMMON FUND: ADVANTAGES
This is a long-term financial investment.
And he has a better plan for various events in the child’s life.
It has a simple and straightforward way to track the investments made.
It has no tax implications.
Tax saving has become easier thanks to the advantage of indexation.
Taxes payable on redemption are minimized due to the indexing benefit.
MUTUAL GIFT FUND FOR CHILDREN: LIST OF MUTUAL FUNDS IN INDIA
- ICICI prudential childcare
- HDFC Children’s Donation Fund
- TATA Fund for Young Citizens
- Franklin Children’s Asset Plan (CAP)
- UTI Child Career Plan (CCP)
- AXIS Children’s Giving Fund
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