New Year 2025: You Should Not Miss These Children’s Mutual Funds

The New Year 2025 brings fresh opportunities for parents to set their children up for financial success. One such opportunity lies in Children Mutual Funds—an investment option designed to grow wealth for the long-term needs of your child. Whether it’s saving for education, marriage, or other major milestones, these funds offer a reliable way to ensure your child’s financial future.

As 2025 approaches, it’s the perfect time to explore the best Children Mutual Funds, their benefits, and how they can work as a cornerstone of your child’s financial foundation. In this blog, look at the best children mutual funds to look at in 2025

Top Children Mutual Funds Based on 3Y CAGR

Note: The above-mentioned funds have been selected on AUM of a minimum of ₹1,000 crore and sorted based on 3Y CAGR as of December 30, 2024.

Overview of Top Children Mutual Funds

SBI Magnum Children’s Benefit Fund

SBI Magnum Children’s Benefit Fund is 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). The investment objective of this fund is to derive long-term capital appreciation by investing predominantly in equity and equity-related securities of companies across sectors and market capitalisations.

Key Metrics

• Benchmark: CRISIL Hybrid 35+65 – Aggressive Index
• NAV: ₹43.1098 (As of Dec 27, 2024)

ICICI Prudential Child Care Fund (Gift Plan)

ICICI Prudential Child Care Fund (Gift Plan) seeks to generate capital appreciation by creating a portfolio that is invested in equity and equity-related securities and debt and money market instruments.

Key Metrics

• Benchmark: Nifty 50 Hybrid Composite Debt 50:50 – Balanced Index
• NAV: ₹308.88 (As of Dec 27, 2024)

Aditya Birla SL Bal Bhavishya Yojna

Aditya Birla SL Bal Bhavishya Yojna is 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). The investment objective of Aditya Birla SL Bal Bhavishya Yojna is to derive capital appreciation by creating a portfolio that is predominantly investing in equity & equity-related securities and debt and money market instruments.

Key Metrics

• Benchmark: NIFTY 500 – TRI
• NAV: ₹19.41 (As of Dec 27, 2024)

Conclusion

As we step into 2025, it’s an opportune moment for parents to take proactive steps toward securing their children’s financial future. Children Mutual Funds, with their long-term growth potential, can play a pivotal role in helping achieve crucial milestones like education and marriage.

Curious about the returns on a one-time investment? Use our Lumpsum Calculator to estimate your future gains and make informed decisions for your financial growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.