Children’s mutual fund schemes in India have seen a remarkable surge in popularity over the past five years, with assets under management (AUM) climbing by approximately 160%. The rapid growth reflects increasing parental focus on long-term financial planning, especially as education and related expenses continue to rise across the country.
Key Highlights
- Children’s mutual funds AUM jumped 160% in five years, reaching ₹25,675 crore amid rising education costs.
- Growing parental focus on long-term education planning is driving increased adoption of kids-focused mutual fund schemes.
Data shows the AUM of children-oriented mutual funds reached around ₹25,675 crore, underscoring how these investment options are becoming a trusted vehicle for parents aiming to build a corpus for future needs such as school fees, college tuition, and other developmental goals. Financial advisors attribute this momentum to heightened awareness about systematic investing and structured goal-based financial planning.
Children’s funds typically pool investments with the specific purpose of supporting a child’s future milestones. They often include a mix of equity and debt instruments and can be tailored to align with investment horizons that span many years or even decades. By focusing on long-term wealth creation while managing risk through diversification, these funds appeal to parents seeking disciplined savings solutions.
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Despite strong past performance, industry experts caution that potential investors should evaluate such schemes based on their own financial goals, risk tolerance, and time horizon. While these funds may offer attractive growth prospects, market volatility and the inherent risks associated with equity investments remain important considerations.
In summary, the robust expansion of the children’s mutual fund segment highlights a broader shift in Indian households toward structured investment strategies to meet long-term financial objectives. Proper planning and informed decision-making, experts say, are key to leveraging these funds effectively.
