Radhika Gupta on benefits of starting SIP in your child's name

"The benefit of starting an SIP in your child's name is that it not only helps teach good money habits later, but when the folio belongs to the child, one tends to be more goal-oriented and long-term," said Radhika Gupta, CEO of Edelweiss Mutual Fund. "One should ideally start this as soon as possible and for a specific goal," she added.

She posted on social media, “One of the things I've been talking about a lot is the benefit of starting an SIP in your child's name, ideally as soon as possible and for a specific goal. Not only does this help teach good money habits later, but when the folio belongs to the child, you tend to be more goal-oriented and long-term.”



According to Sebi, children’s funds are schemes that have a lock-in period of at least five years or until the child attains the age of majority, whichever is earlier.

Also Read | Mutual fund investors pour Rs 3,063 crore in largecap funds. Time to shift your portfolio?

In the last five years, children’s funds have offered an average return of around 12.62%. HDFC Children's Fund offered the highest return of around 16.40% in the last five years, followed by Tata Young Citizen Fund, which gave a 15.84% return during the same period.

SBI Magnum Children's Benefit Fund-Savings Plan delivered a return of around 12.61% in the same period. LIC MF Children’s Fund gave 10.31% during this time.

In the last three years, these schemes have delivered an average return of around 11.07%, with the highest return offered by SBI Magnum Children's Benefit Fund-Investment Plan at around 18.23%. LIC MF Children’s Fund and UTI Children's Hybrid Fund provided returns of 8.89% and 7.98%, respectively.

Also Read | SIP calculator: Rs 250 JanNivesh scheme can leave you with Rs 17 lakh corpus in 30 years

In her social media post, the CEO also shared how one can open a new folio in the name of a minor at Edelweiss Mutual Fund in three easy steps.