Children Solutions

About

An open-ended fund for investment for children having a lock-in for at least 5 years or till the child attains the age of majority (whichever is earlier). This is meant to invest to build a corpus for the child and their needs in the coming years.

Fund Type

Solution Oriented Schemes

Key Features

Goal-based long term investment: Tailored specifically for child’s future goals.

Blend of equity & debt: Diversified mix that aims for capital growth plus stability.

Lock-in commitment: At least 5 years or until age 18.

Penalty for early redemption: High exit loads to enforce disciplined investing.

Taxation

STCG

If Equity Allocation is ≥ 65% Holding Period ≤ 12 months, 20% Tax on Gain. Otherwise as per Income Tax slap

LTCG

If Equity Allocation is ≥ 65% Holding Period > 12 months, 12.5% Tax on Gain. Otherwise as per Income Tax slap

Dividends Tax

As Per Income tax slab rates, TDS of 10% may be deducted by the fund house if dividend income exceeds ₹5,000 in a financial year.

Exemption Limit

If Equity Allocation is ≥ 65%. 1.25 Lakh on LTCG in financial year

Indexation

No Indexation

Allocation

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Equity and Equity Instruments

90%

Debt Instruments

10%

The exact allocation depends on the specific children’s fund and its objective.

Locked in Period

5 years or until the child attains 18 years of age, whichever is earlier.

Exit Load

Some schemes might charge an exit load of 4% if units are redeemed within 5 Years. However, the exact structure may vary based on the specific scheme.

Risk Associated

*If Equity Allocation ≥ 65%

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.