CHILDREN’S GIFT MUTUAL FUNDS
What is a Children's Gift Mutual Fund? Children's Gift Funds fall under the category of Hybrid Funds or Balanced Mutual Funds. Gift Funds invest in appropriate proportion of Debt and Equity assets. T hese funds aim is to create corpus through long term capital appreciation to provide financial assistance during children’s crucial stages for education, marriage, etc. These mutual funds have a minimum lock-in period of 5 years, and they can be extended until the child becomes an adult. Children’s mutual funds do not allow an investor to withdraw the money until the maturity, making it an ideal long-term investment option. Due to its long-term nature, it also protects an investor against market volatility to some extent. Being patient with the investment despite market fluctuations ensures greater return than selling it whenever market dips. Types of Children's Gift Mutual Fund Based on the level of exposure to equities, these are classified further as, "Hy