How do I open a mutual fund for my child?

Many financial firms offer children mutual funds that parents can open for their children. The process of opening the fund requires the parents to present to the fund house the necessary documentation. To open a minor’s mutual fund folio, the parent must provide 2 key documents. Firstly, the proof of age and date of birth of the minor must be provided. The documents such as passport, aadhaar, birth certificate can be presented as a proof of age and date of birth. Secondly, the proof of their relationship with the child must be submitted. For such purpose the birth certificate or the passport mentioning the name of the parent must be submitted. Also, during redemption, additional documents pertaining to the child will have to be submitted.

Can I gift a mutual fund to my child?

You can gift a mutual fund to your child, financial firms offer dedicated children mutual funds that parents or guardians can invest in for their children. The fund comes with a mandatory lock-in period of 5 years or until the child becomes a major. It also can be tailored to serve different purposes such as child’s schooling, higher education, marriage, and healthcare needs. The investor investing on the behalf of the minor or gifting the mutual funds to a minor must provide a proof of relationship of either a parent or a legal guardian.

How do I invest on behalf of my child?

Parents can invest on behalf of their children, there are several schemes dedicated for children. Also, parents can invest on behalf of their children through a custodial account which they can use to invest in many types of securities like stocks or mutual funds.

How do kids buy mutual funds?

Kids cannot buy mutual funds on their own since they are minors. However, parents or guardians can buy on behalf of the kids. This requires the parents to submit proof of the relationship with the kid. Although the account is opened by the parents, the account is owned by the kid.

Can I start an investment fund for my child?

You can start an investment fund for your child. If you are planning to hold the investment for the long term to cover the child's future needs, you can invest in a children fund. This fund comes with a mandatory lock-in period of 5 years or until the child becomes an adult. Also it can be designed to cover different future needs such as marriage and education.

Best Children Mutual Funds to Invest in 2025

Fund name	AUM	1Y CAGR	3Y CAGR	Till Date CAGR
UTI Children's Equity Fund Direct (G)	₹ 994 Cr	7.3%	11%	13.7%
ICICI Prudential Child Care Fund-Gift Plan Direct (G)	₹ 1,183 Cr	6.5%	16.1%	14.1%
Tata Young Citizens Fund Direct (G)	₹ 322 Cr	4.4%	11.9%	12.5%
LIC MF Children's Fund Direct (G)	₹ 13 Cr	5%	10.1%	10.3%
SBI Magnum Children's Benefit Fund - Savings Plan Direct (G)	₹ 119 Cr	14%	12.2%	12.4%
Aditya Birla Sun Life Bal Bhavishya Yojna Direct (G)	₹ 955 Cr	4%	11.9%	11.9%
Baroda BNP Paribas Children's Fund Direct (G)	₹ 68 Cr	-	-	-3.8%
Union Children's Fund Direct (G)	₹ 56 Cr	7.6%	-	11.1%
HDFC Children's Fund Direct (G)	₹ 9,057 Cr	8%	15.3%	15.8%
SBI Magnum Children’s Benefit Fund - Investment Plan Direct (G)	₹ 3,014 Cr	20.5%	19.5%	36.6%
HDFC Children's Fund Direct (G)	₹ 9,057 Cr	8%	15.3%	15.8%
UTI Children's Equity Fund Direct (G)	₹ 994 Cr	7.3%	11%	13.7%

Top 10 Children’s Mutual Funds to invest in 2025

Below are the childrens fund in india:

1. UTI Children's Equity Fund Direct (G)

UTI Children's Equity Fund Direct (G) is a Others fund that has delivered a 1 Year return of 7.3%, a 3 Years return of 11.0% and a 5 Years return of 24.4%. The fund has an expense ratio of 1.2% and an AUM of ₹994 crores as of 2025-04-04.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 97.06% to equities, 0.01% to debt and 2.93% to other assets.

2. ICICI Prudential Child Care Fund-Gift Plan Direct (G)

ICICI Prudential Child Care Fund-Gift Plan Direct (G) is a Others fund that has delivered a 1 Year return of 6.5%, a 3 Years return of 16.1% and a 5 Years return of 23.3%. The fund has an expense ratio of 1.5% and an AUM of ₹1183 crores as of 2025-04-04.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 84.06% to equities, 12.76% to debt and 3.18% to other assets.

3. Tata Young Citizens Fund Direct (G)

Tata Young Citizens Fund Direct (G) is a Others fund that has delivered a 1 Year return of 4.4%, a 3 Years return of 11.9% and a 5 Years return of 24.9%. The fund has an expense ratio of 1.9% and an AUM of ₹322 crores as of 2025-04-04. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 97.25% to equities and 0.89% to other assets.

4. LIC MF Children's Fund Direct (G)

LIC MF Children's Fund Direct (G) is a Others fund that has delivered a 1 Year return of 5.0%, a 3 Years return of 10.1% and a 5 Years return of 18.0%. The fund has an expense ratio of 1.7% and an AUM of ₹14 crores as of 2025-04-04. It was Launched on 2013-01-16. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 85.66% to equities, 11.05% to debt and 3.28% to other assets.

5. SBI Magnum Children's Benefit Fund - Savings Plan Direct (G)

SBI Magnum Children's Benefit Fund - Savings Plan Direct (G) is a Others fund that has delivered a 1 Year return of 14.0%, a 3 Years return of 12.2% and a 5 Years return of 15.8%. The fund has an expense ratio of 0.8% and an AUM of ₹119 crores as of 2025-04-04.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 19.63% to equities, 62.14% to debt and 18.23% to other assets.

6. Aditya Birla Sun Life Bal Bhavishya Yojna Direct (G)

Aditya Birla Sun Life Bal Bhavishya Yojna Direct (G) is a Others fund that has delivered a 1 Year return of 4.0%, a 3 Years return of 11.9% and a 5 Years return of 19.1%. The fund has an expense ratio of 1.0% and an AUM of ₹956 crores as of 2025-04-04. It was Launched on 2019-02-11. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 97.58% to equities and 2.42% to other assets.

7. Baroda BNP Paribas Children's Fund Direct (G)

Baroda BNP Paribas Children's Fund Direct (G) is a Others fund. The fund has an expense ratio of 0.3% and an AUM of ₹69 crores as of 2025-04-04. It was Launched on 2024-12-27. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 94.08% to equities, 5.99% to debt and -0.07% to other assets.

8. Union Children's Fund Direct (G)

Union Children's Fund Direct (G) is a Others fund that has delivered a 1 Year return of 7.6%. The fund has an expense ratio of 1.1% and an AUM of ₹57 crores as of 2025-04-04. It was Launched on 2023-12-19. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 94.56% to equities, 0.09% to debt and 5.35% to other assets.

9. HDFC Children's Fund Direct (G)

HDFC Children's Fund Direct (G) is a Others fund that has delivered a 1 Year return of 8.0%, a 3 Years return of 15.3% and a 5 Years return of 24.6%. The fund has an expense ratio of 0.9% and an AUM of ₹9058 crores as of 2025-04-04. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 64.05% to equities, 33.12% to debt and 2.83% to other assets.

10. SBI Magnum Children’s Benefit Fund - Investment Plan Direct (G)

SBI Magnum Children’s Benefit Fund - Investment Plan Direct (G) is a Others fund that has delivered a 1 Year return of 20.5% and a 3 Years return of 19.5%. The fund has an expense ratio of 1.0% and an AUM of ₹3015 crores as of 2025-04-04. It was Launched on 2020-09-29. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 74.21% to equities, 0.16% to debt and 21.33% to other assets.

Best Children’s Mutual Funds

List of Childrens Mutual Funds in 2025