Children mutual fund: ₹10,000 monthly SIP grows to ₹11.74 lakh in 7 years

Children mutual funds are ideal ideal investment instrument to accumulate substantial wealth for one’s children. It helps you ensure a financially sound future of your child. However, before making any mutual funds investment decision for your child, one needs to know about LIC MF Children’s Gift Fund – Direct Plan. 

An investor can invest in this plan in both systematic investment plan (SIP) mode and in one time lump sum investment mode. In last 5 years, this mutual funds SIP plan has delivered 31.50 per cent return to its investors whereas in last 5 years, while in last 7 years one’s 10,000 monthly SIP in this plan would have grown up to 11.74 lakh.

Mutual funds SIP return calculation

In last 5 years, this mutual funds SIP plan has delivered around 31.50 per cent absolute return to its investors whereas it has given near 11 per cent annualised return in this period. In last 3 years, this SIP plan has delivered around 23.75 per cent absolute return while its annualised yield in this period is 14.35 per cent in this time horizon. In last two years, its absolute return is around 17.75 per cent whereas its annualised yield in this period is around 16.65 per cent.

10,000 monthly SIP turns to 7.83 lakh in 7 years

If an investor had started 10,000 monthly SIP in this children mutual fund one year ago, its 10,000 monthly investment would have grown up to 1.21 lakh today. If the investor had started 10,000 monthly investment in this mutual funds SIP plan 3 years ago, its 10,000 per month would have grown up to 4.41 lakh today. Likewise, if an investor had started 10,000 monthly investment in this plan 5 years ago, its 10,000 monthly would have turned to 7.83 lakh today. Similarly, in last 7 years, 10,000 monthly investment in this SIP plan would have turned to 11.74 lakh today.

This children mutual fund has investments in Indian stocks to the tune of 86.72 per cent out of which 65.12 per cent is in large-cap stocks, 9.87 per cent is in mid-cap stocks whereas 4.55 per cent is in small-cap stocks. This child fund has around 11.54 per cent investments in debt fund out of which 11.54 per cent is in government securities.

Apart from this children mutual fund plan , there are other plans too that have given stellar return to its investors in medium to long-term. HDFC Children’s Gift Fund is one such plan, where one’s 10,000 monthly investment would have grown up to 13.66 lakh in 7 years.

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