Mutual fund child plan is a financial product that offers a combination of long-term growth potential and financial security, ensuring that your child’s education expenses, career aspirations, marriage and other important milestones are well-supported. Let us read about the best mutual fund child investment plans in 2025 that helps you pave the way for your child’s bright future:
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Investing in your child's future:Investment will continue with or without you
Benefits of Investing In Child Plan
Waiver of Premium Benefit
Future Premiums are paid by the insurer upon death of policyholder
Flexible Payout Options
Your premiums help your child achieve their dreams through lump sum or regular payouts
Wealth Boosters
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Zero Commission
We charge no commission when you buy from us. Also buy online & get extra
Tax Benefits^
You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)
Investment Flexibility
It offers the flexibility to invest at regular intervals or as a one-time contribution
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Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr# Tax-Free*
A mutual fund child plan is an investment option that helps you to create a financial net to secure your child's future financial needs. These plans are structured to provide a disciplined and goal-oriented approach to investing fir your child’s higher education, career, marriage, or other important life milestones. There are two main types of mutual fund child plans:
Unit Linked Insurance Plans (ULIP)
Child Plans
These child investment plans invest in a variety of mutual fund assets, such as:
Equities
Bonds
Hybrid Funds
The goal of these plans is to grow the money over time so that it can be used for the child's education, coaching, tour, marriage, or other expenses.
Best Mutual Fund Plans for Child in 2025≈
The best mutual fund today offered by various insurance companies for an individual with the following conditions are listed in the table below:
Your Entry Age: 30 years
Investment Amount: Rs. 10,000 per month
Premium Payment Term: 10 years
Policy Term: 20 years
Investment Plans
Entry Age
Maturity Age
Policy Term (PT)
Minimum Premium Amount (Annual)
Aditya Birla Capital Wealth Aspire Plan
18 - 65 years
18 - 75 years
10 - 40 years
Rs. 40,000
AVIVA Life i-Growth
18 - 50 years
Up to 60 years
10/ 15/ 20 years
From Rs. 48,000
Bajaj Allianz Smart Wealth Goal-Child Wealth
18 - 55 years
33 - 85 years
15 - 30 years
Rs. 48,000
Edelweiss Tokio Wealth Secure Plus- Child
0 - 50 years
18 - 70 years
5 - 25 years
Rs. 24,000
HDFC Life Click 2 Wealth - Child
30 days - 60 years
18 - 75 years
10 - 40 years
Rs. 12,000
HDFC Life Sampoorn Nivesh- Classic Waiver Benefit
30 days - 65 years
18 - 85 years
85 years - Entry Age
Rs. 12,000
ICICI Pru Smart Kid Plan
20 - 54 years
30 - 64 years
10 - 25 years
Rs. 45,000
Kotak Life E-Invest
3 - 60 years
18 - 75 years
10/ 12/ 15/ 20 years
Rs. 24,000
LIC SIIP Plan
90 days - 65 years
18 - 85 years
10 - 25 years
Rs. 40,000
Max Life Online Savings Plan- Child Plan
18 - 54 years
64 years
5 - 30 years
Rs. 12,000
PNB MetLife Mera Wealth Plan
30 days - 60 years
67 - 80 years
10 - 30 years
Rs. 12,000
SBI Life eWealth Insurance
18 - 50 years
60 years
10 - 30 years
Rs. 24,000
TATA AIA Fortune Pro-WOP
18 - 60 years
65 years
15 - 40 years
Rs. 12,000
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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Invest ₹10K/MonthYOU GET₹1 Crores*For Your ChildView Plans
Invest ₹8K/MonthYOU GET₹80 Lakhs*For Your ChildView Plans
Invest ₹5K/MonthYOU GET₹50 Lakhs*For Your ChildView Plans
Standard T&C Apply *
What are the Features of Mutual Fund Child Plan?
Child Plan is one of the best mutual fund to invest now to create a large corpus for your child. Some of its key features are listed in the table below:
Features
Details
Life Coverage
ULIP and Child Plans offer insurance benefits to provide you with a peace of mind in case of your unfortunate demise
High Returns Potential
Mutual Fund Child Plans invest in market-linked instruments, such as equities
They have the potential to generate higher returns over the long term
Goal-oriented Investment
These child investment plans are specifically designed to meet the financial goals of children
These plans provide a disciplined approach to investing
They ensure that funds are allocated towards achieving your life goals
Professional Fund Management
Mutual Fund Child Plans are managed by experienced and skilled fund managers
These professionals make investment decisions on the behalf of investors
These fund managers have expertise in selecting suitable investment opportunities
They adjust the portfolio based on market conditions to maximize returns
Diversification
Mutual Fund Child Plans invest in a diversified portfolio of securities
These include stocks, bonds, and other market instruments
This diversification helps spread the investment risk
It potentially enhances returns by capturing growth opportunities across different asset classes
Flexibility
This best investment plan for child offer flexibility in terms of the following:
Investment amount
Tenure
Premium Payment Mode
Maturity Returns Payout Options, and more
Systematic Investment Plans (SIPs)
ULIP funds and Child Plan funds often provide the option of investing through SIPs
SIPs allow parents to invest a fixed amount regularly at predefined intervals (monthly, quarterly, etc.)
Systematic Withdrawal Plans (SWPs)
Some child investment plans, offer Systematic Withdrawal Plans (SWPs) as a withdrawal option
This allows you to withdraw a predetermined amount at regular intervals from the accumulated corpus
Tax Benefits
As compared to direct mutual fund investment, mutual fund child plans and ULIP plans offer tax benefits u/ Section 80C and Section 10 (10D) of the Income Tax Act, 1961
This allows parents to avail tax deductions on the amount invested and interest earned, thus, providing additional savings
It ensures a steady cash flow without depleting the entire investment amount at once
There are many benefits to investing in a mutual fund based child plan. Some of the key benefits include:
Transparency
Mutual Fund Child Plans provide transparency regarding the portfolio holdings, performance, and charges associated with the plan.
Growth Potential
The funds in ULIP plans and Child Investment Plans have the potential to grow your money over time, thanks to the power of compounding.
Rupee Cost Averaging
If investing through SIPs, ULIP and child plans benefit from rupee cost averaging. As regular investments are made at different market levels, more units are purchased when prices are low and fewer units when prices are high. This helps in mitigating the impact of market volatility and potentially enhances returns over the long run.
Long-Term Wealth Creation
Child Investment Plans and ULIPs typically have a long investment horizon, which allows for potential wealth creation over time.
Secured Investment
Mutual funds are a secure investment option as they are regulated by the Securities and Exchange Board of India (SEBI).
Easy Liquidity
While child plans are intended for long-term investing, they still offer liquidity options like Systematic Withdrawal Plan (SWP). Investors can typically make partial withdrawals or redeem units if there is a need for funds in case of need, emergencies or unforeseen expenses.
Investment
Secure
Secure your child’s future with or without you
Start Investing
₹10,000/Month
& Get
₹1 Crore*
*Standard T & C Apply
Documents Required to Buy a Mutual Fund Child Plan
The documents required to buy a mutual fund child plan are as follows:
Particulars
Documents Required
Proof of Child’s Age
Birth certificate
Passport
10th Board Certificate
ID Proof (Parent/ Guardian)
Valid Passport
PAN Card
Aadhaar Card
Driver's License
Voter ID Card
KYC documents
PAN Card (Parent/ Guardian)
Aadhaar Card
Passport-size Photograph
Address Proof
Utility Bill
Bank Statement
Aadhaar Card
Driver's License
Rent Agreement
Proof of Relationship
Child's Birth Certificate (showing parent’s name)
A Court Order that appoints a Guardian
Bank Account Details
Account Number
Branch Name
IFSC Code
Bank Account Statement
How to Buy a Mutual Fund Child Plan?
To buy a mutual fund-based child plan, you can follow these general steps:
Step 1: Determine your financial objectives for the child's future
Step 2: Conduct thorough research on different insurance companies and their fund options in ULIP and child investment plans
Step 3: Choose a child plan from the list of best investment plan for child mentioned above. Select a plan that aligns with your financial goals, risk tolerance, and investment preferences.
Step 4: Complete the KYC process
Step 5: Choose among the lump-sum investment or opt for a Systematic Investment Plan (SIP)
Step 6: Duly fill out the application form and submit it along with essential documents
Step 7: Make the initial premium amount through cheque, demand draft, or online payment
Step 8: Regularly review your investment and make adjustments as needed to stay on track with your financial goals
Mutual Funds vs. Mutual Fund Child Plans
Mutual funds and mutual fund child plans are both investment options for children, but they have some differences in their purpose and features:
Particulars
Mutual Fund Child Plans
Mutual Funds
Purpose
These plans are a specific type of mutual fund plan that is designed to help parents save and invest for their child's future needs
They aim to generate returns for investors based on the performance of the underlying investments
Investment Objective
These plans have a dual objective:
They aim to provide capital appreciation by investing in a diversified portfolio like regular mutual funds
It also ensures that the investment matures around the time the child needs funds for specific milestones in their life
The primary objective of mutual funds is to generate capital appreciation or income for the investors over the long term, depending on the fund's investment strategy
Lock-in Period
Many child plans have a lock-in period, that helps ensure that the investment remains intact and grows steadily to meet the child's future needs
Mutual funds do not have a lock-in period (except ELSS funds)
Insurance Component
child plans include an insurance component, that ensures that the child's future needs are still taken care of even if something happens to the investor
They solely focus on investment and do not provide any life insurance coverage
Important Points to Consider Before Investing in Mutual Fund for Child
Here are some important points to consider before investing in a mutual fund child plan and ULIP Plan:
Investment Goal
The first step is to determine the purpose of investing in a ULIP or child plan. Are you saving for your child's education, marriage, or something else? Once you know your investment goal, you can start to look for mutual funds that align with your goals.
Risk Profile
Consider how much risk are you comfortable taking with your investment? Mutual funds can be risky, so it is important to choose funds that match your risk tolerance.
Investment Horizon
Understand your investment horizon. Determine, how long do you plan to invest? As mutual funds are a long-term investment, so it is important to choose funds that have a long track record of performance.
Fund Type
There are many different types of mutual funds available. Some of the most popular types of mutual funds for children include-
Fund Type
Investment Type
Risk- Return Factor
Equity funds
Invests in stocks and equities
Potential for high returns
Carry a high level of risk
Debt funds
Invests in bonds
Lower returns
Lower risk
Hybrid funds
Invest in a mix of stocks and bonds
Offers a balance of risk and return
Fund Manager
The fund manager is responsible for making investment decisions for the mutual fund. It is important to choose a fund manager with a good track record of performance.
Fees
Mutual funds charge fees, which can eat into your returns. It is important to choose funds with low fees.
Exit load
Some mutual funds have an exit load, which is a fee charged when you sell your shares. It is important to factor in the exit load when you are making your investment decision.
Fund Performance
Assess the historical performance of the mutual funds included in the child plan. Look for consistent returns over different market cycles and compare them with relevant benchmarks. Keep in mind that past performance does not guarantee future results.
Asset Allocation
Examine the asset allocation strategy of the child plan. It should be well diversified across different asset classes like equities, debt instruments, and possibly other asset classes, depending on the plan.
In Conclusion
A mutual fund child plan can be a suitable investment option to secure your child's future financial needs. They offer a number of benefits, including tax benefits, flexibility, potential for high returns, and security. However, before investing, it is crucial to consider carefully factors such as the risk profile, fund performance, asset allocation, costs and fees, investment tenure, tax implications, and the reputation of the fund house.
FAQ's
Which mutual fund is best for child?~
Choosing the best mutual fund for a child depends on various factors such as the investment objective, risk tolerance, investment horizon, and individual preferences.
Here is a list of the top mutual funds that is best for your child:
SBI Magnum Children s Benefit Fund (G)
Axis Children’s Gift Fund
TATA Young Citizens Fund
ICICI Prudential Child Care Fund Gift Plan
HDFC Childrens Gift Fund
Can I open a mutual fund child plan for my kid?
Yes, you can open a mutual fund child plan for your kid. These plans are designed to help parents save for their child's future goals, like education, travel, and marriage.
What is child plan in mutual fund?
A child plan in mutual fund is a type of market-linked plan such as Unit Linked Insurance Plan (ULIP) or Child Education Plan that is specifically designed to help fulfil the life goals of children. The mutual fund child investment plans offer dual benefits of life insurance and investment.
Can we invest in SIP for children?
Yes, you can invest in SIP for children through Unit Linked Insurance Plans (ULIPs), Child Education Plans, or directly in mutual funds. It is an ideal way to invest in small payments every month towards the mutual fund of your child rather than a lump sum payment.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. ++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
Investment
Secure
Secure your Child’s Career Goal
Start Investing ₹10,000/Month
& Get ₹1 Crore*
*Standard T & C Apply
Insurers Offering Child Plans
Tata AIA
Aditya Birla Sun Life
Bajaj Allianz
Axis Max Life
HDFC Life
ICICI Prudential
Bharti AXA Life
Edelweiss Life
Kotak Life
Future Generali
PNB MetLife
SBI Life
Aviva
Bandhan Life
Canara HSBC
IDBI Federal
IndiaFirst
Pramerica Life
Reliance Life
Sahara Life
Shriram Life
Star Union
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or
insurance product offered by an insurer.