Recommendation of Mutual Fund for Child

[dannydsouza]

Hi,

I have got a 7 month old son, and intent to start a SIP for him, hence a recommendation in which MF to do so,

1) Do I invest in the top 3 MF basis on their return.
2) which sectors do I need to look at,

These are some of the question that are there in my mind.

Request guidance from experts in this matter.

Regards
Danny

 

[milind]

I don't see why choice of MF for a child should differ from what you would chose for yourself. There are several posts on this forum regarding top rated funds. Go for diversified equity funds using SIP, no NFOs, use longer term (5-7yr) performance as a metric, use value research ratings.

-- Milind

 

[vishal412]

When you are thinking about investing for your child, you should look into broader spectrum.Think for long term investments and what better than Mutual FUnds, Use PersonalFN recommendation on long term Mutual Funds investments.

 

[blueninja]

Hi,

I have got a 7 month old son, and intent to start a SIP for him, hence a recommendation in which MF to do so,

1) Do I invest in the top 3 MF basis on their return.
2) which sectors do I need to look at,

These are some of the question that are there in my mind.

Request guidance from experts in this matter.

Regards
Danny

Hello Danny

Can you pls advise how much amount you like to invt vide sip and for how long ?

1) look for MF return for last 5 to 7 years. but dnt look for any sector fund
2) Invest in Blalanced Funds

thn s

 

[yodlee99]

This is a great question for parents and I am still working on it. Here are a few suggestions... please do some more research and share your findings with everyone here.
I would always suggest SIP in well-managed & diversified equity mutual funds as a better option than FDs, because equity scores much better in the long run.
#1) You can always go for DSPBR Equity fund and HDFC Equity fund.
#2) Since this is for long term, you should have 1 or 2 small cap funds to boost the results like DSPBR Microcap fund, ICICI Discovery, IDFC Premier Equity Plan A or DSPBR Small & Mid cap fund.

#3) Some mutual funds offers FREE Life Insurance for Parents aged less than 45 years:
Century SIP in Birla Frontline Equity Plan-A Fund
SIP Insure in Reliance Equity Opportunity Fund
KOTAK STARKID SIP in KOTAK Opportunity Fund

Good luck!

 

[blueninja]

This is a great question for parents and I am still working on it. Here are a few suggestions... please do some more research and share your findings with everyone here.
I would always suggest SIP in well-managed & diversified equity mutual funds as a better option than FDs, because equity scores much better in the long run.
#1) You can always go for DSPBR Equity fund and HDFC Equity fund.
#2) Since this is for long term, you should have 1 or 2 small cap funds to boost the results like DSPBR Microcap fund, ICICI Discovery, IDFC Premier Equity Plan A or DSPBR Small & Mid cap fund.

#3) Some mutual funds offers FREE Life Insurance for Parents aged less than 45 years:
Century SIP in Birla Frontline Equity Plan-A Fund
SIP Insure in Reliance Equity Opportunity Fund
KOTAK STARKID SIP in KOTAK Opportunity Fund

Good luck!

Hello

Their are couple of investment funds like " HDFC Children's Gift-Inv " should we go for it ?

thnk s

 

[milind]

Hello

Their are couple of investment funds like " HDFC Children's Gift-Inv " should we go for it ?

thnk s

Is this fund providing any special benefits to compensate for 3 year lock-in?

Returns for past 5 years are 67,-40,31,12,34 vs. for Prudence (also a hybrid fund) 84,-42,43,33,47

-- Milind

 

[surfingminds]

I am also doing SIP for my 1 year daughter and almost in process of finalizing

1. HDFC Prudence or Reliance Regular savings BAlanced
2. HDFC Top 200 or Reliance Equity opportunities

3. Any suitable child plan


note : Always Keep insurance seprate from investments Its better you take a term plan with enough cover than looking for free insurance covers or ULIPs it works better as your investments can easily take care for the premium of any good term plan with maximum cover.

 

[savkar]

Hi,
Why not 50% in Fd and 50% in SIP. i am sure you must be planning it for his/her higher/college education. in 16 yrs an FD will give a risk free returns plus equity returns.

Hi,

I have got a 7 month old son, and intent to start a SIP for him, hence a recommendation in which MF to do so,

1) Do I invest in the top 3 MF basis on their return.
2) which sectors do I need to look at,

These are some of the question that are there in my mind.

Request guidance from experts in this matter.

Regards
Danny

 

[yodlee99]

There is some more info here about the free life insurance cover for parents who take longterm SIPs in these MF schemes. 1st holder should be a parent who should also be an earning member & other parent can be a guardian while the child can be a nominee.

"Invest in Birla Sunlife Frontline EQUITY Fund under CENTURY SIP Plan.You will get FREE Life Insurance Cover of Rs.4 Lacs till the Age of 55 years.

Invest in Reliance Equity Opportunity Fund for 15 Years in SIP INSURE Plan. In case of DEATH of Parent, Reliance Life Insurance Co.will pay Remaining Installments due upto Remaining Period & Child will get Full amount of 15 years SIP.

Invest in KOTAK STARKID by SIP for 20 years. In case of Death of Parent KOTAK Life Insurance Co.will pay Remaining Installments of SIP,similar to Reliance."

Hope this was useful. I will pass on more info as I get it.

This is a great question for parents and I am still working on it. Here are a few suggestions... please do some more research and share your findings with everyone here.
I would always suggest SIP in well-managed & diversified equity mutual funds as a better option than FDs, because equity scores much better in the long run.
#1) You can always go for DSPBR Equity fund and HDFC Equity fund.
#2) Since this is for long term, you should have 1 or 2 small cap funds to boost the results like DSPBR Microcap fund, ICICI Discovery, IDFC Premier Equity Plan A or DSPBR Small & Mid cap fund.

#3) Some mutual funds offers FREE Life Insurance for Parents aged less than 45 years:
Century SIP in Birla Frontline Equity Plan-A Fund
SIP Insure in Reliance Equity Opportunity Fund
KOTAK STARKID SIP in KOTAK Opportunity Fund

Good luck!