What is a children's mutual fund?

A children's mutual fund is a solution-oriented mutual fund scheme that SEBI mandates to carry a lock-in period of five years or until the child attains the age of majority, whichever is earlier. These funds invest in a mix of equity and debt instruments depending on whether they follow an equity-oriented or debt-oriented plan. They are designed to build a corpus for long-term goals associated with a child's future. Disclaimer : Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

What are the best mutual funds for children in 2026?

As of 8th July 2026, here are the best mutual funds for children based on 3Y CAGR: SBI Children's Fund - Investment Plan ICICI Pru Children's Fund Aditya Birla SL Bal Bhavishya Yojna SBI Children's Fund - Savings Plan LIC MF Children's Fund Disclaimer : Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

Is a children's mutual fund the same as a child saving plan?

A children's mutual fund is one type of child saving plan. The broader term includes other instruments such as Sukanya Samriddhi Yojana, Public Provident Fund, National Savings Certificate, and traditional life insurance plans. Children's mutual funds specifically involve market-linked investments through SEBI-regulated schemes, whereas other child saving plans may offer fixed or guaranteed returns with different tax and liquidity characteristics.

How does a SIP for child education planning work?

A systematic investment plan in a children's mutual fund works in the same way as a regular SIP. A fixed amount is invested on a chosen date each month, and units are allotted based on the prevailing NAV. Over time, SIP investing averages the purchase cost across different market levels. Given the mandatory lock-in in children's funds, SIP investments remain locked for five years from the date of each SIP instalment or until the child attains majority. Investors can track and manage their SIP on Tickertape.

What is the taxation of mutual fund for child education?

Children's mutual funds that are equity-oriented (with equity allocation of 65% or more) are taxed under equity capital gains rules. Short-term capital gains on units held for less than 12 months are taxed at 20%. Long-term capital gains on units held for more than 12 months are taxed at 12.5% on gains exceeding Rs 1.25 lakh in a financial year across all equity investments combined. Debt-oriented children's fund plans are taxed at the investor's applicable income slab rate regardless of holding period.

Can I invest in a children's mutual fund in a minor's name?

Yes. Children's mutual funds can be held in the name of a minor, with a parent or legal guardian as the operating guardian of the folio. Once the child turns 18, the folio must be transferred to the major's name, and fresh KYC documentation is required before further transactions can be processed. Disclaimer : Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

How can I start a SIP for child planning on Tickertape?

Launch the Tickertape Mutual Fund Screener. Filter by Category: Children's Fund. Compare funds by 3Y CAGR, expense ratio, AUM, and exit load. Click Place Order on the fund page to start a SIP or lumpsum investment.

What is the best investment plan for a child’s future in India?

The best investment plan for a child’s future in India depends on the goal timeline, risk level and liquidity needs. Children’s mutual funds are solution-oriented mutual fund schemes designed for child-related goals, such as education. These funds usually have a lock-in period of at least 5 years or until the child turns 18, whichever is earlier. Disclaimer : Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

List of Best Mutual Funds For Children in India 2026

Children's mutual funds are solution-oriented schemes designed to help investors plan for long-term goals tied to a child's future, such as education or other milestones. They come with a mandatory lock-in of five years or until the child attains majority, whichever is earlier. Here is the complete list of children's mutual funds in India with live NAV, AUM, expense ratio, past performance and more.

Children's Mutual Funds - Best Funds, Benefits & Risks

Mutual Funds For Children

Here is a list of the best mutual funds for children in India

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@8260032 8260032

Showing 1 - 15 of 15 results

last updated at 8:00 AM IST

	NameMFs (15)↓	↓Sub CategorySub Category↓	↓PlanPlan↓	↓AUMAUM↓	↓CAGR 3YCAGR 3Y↓	↓Base Exp. RatioBase Exp. Ratio↓
1.	SBI Children's Fund-Investment Plan SBI Children's Fund-Investment Plan	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	7,764.81 7,764.81	19.53 19.53	0.72 0.72
2.	ICICI Pru Children's Fund ICICI Pru Children's Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	1,435.83 1,435.83	11.23 11.23	1.20 1.20
3.	SBI Children's Fund-Savings Plan SBI Children's Fund-Savings Plan	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	151.63 151.63	10.60 10.60	0.74 0.74
4.	Aditya Birla SL Bal Bhavishya Yojna Aditya Birla SL Bal Bhavishya Yojna	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	1,197.45 1,197.45	9.68 9.68	0.87 0.87
5.	Axis Children's Fund-No Lock in Axis Children's Fund-No Lock in	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	862.61 862.61	7.86 7.86	1.20 1.20
6.	Axis Children's Fund-Compulsory Lock in Axis Children's Fund-Compulsory Lock in	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	862.61 862.61	7.75 7.75	1.20 1.20
7.	LIC MF Children’s Fund LIC MF Children’s Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	15.75 15.75	6.84 6.84	1.39 1.39
8.	Tata Children's Fund Tata Children's Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	313.45 313.45	3.23 3.23	1.56 1.56
9.	Baroda BNP Paribas Children's Fund Baroda BNP Paribas Children's Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	129.68 129.68	- -	0.94 0.94
10.	Union Children's Fund Union Children's Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	95.19 95.19	- -	1.11 1.11
11.	UTI Children's Equity Fund-Scholarship UTI Children's Equity Fund-Scholarship	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	1,063.07 1,063.07	- -	1.10 1.10
12.	UTI Children's Hybrid Fund-Scholarship-Direct plan UTI Children's Hybrid Fund-Scholarship-Direct plan	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	4,390.72 4,390.72	- -	1.27 1.27
13.	UTI Children's Equity Fund UTI Children's Equity Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	1,063.07 1,063.07	- -	1.10 1.10
14.	UTI Children's Hybrid Fund UTI Children's Hybrid Fund	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	4,390.72 4,390.72	- -	1.27 1.27
15.	HDFC Children's Fund(Lock in) HDFC Children's Fund(Lock in)	Solution Oriented - Children's Fund Solution Oriented - Children's Fund	Growth Growth	10,338.68 10,338.68	- -	0.84 0.84

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: Plan: Growth | Category: Equity | Sub-category: Sectoral Fund - Energy & Power | AUM: Sorted from Highest to Lowest

Overview of Best Mutual Funds For Children in 2026

SBI Children's Fund-Investment Plan

SBI Children's Fund - Investment Plan is an equity-oriented solution fund designed for child-related financial goals. The scheme invests mainly in equity and equity-related instruments, along with a debt component, with the objective of long-term capital appreciation. It comes with a lock-in period linked to the scheme rules and the child’s age, making it suitable for investors planning for long-term goals such as education or future financial needs.

ICICI Pru Children's Fund

ICICI Pru Children's Fund is a hybrid solution-oriented scheme that invests across equity, debt and money market instruments. The equity portion aims to support long-term growth, while the debt allocation adds a relatively stable component to the portfolio. The scheme has a mandatory lock-in period as per category rules, making it more aligned with long-term child-focused goals.

Aditya Birla SL Bal Bhavishya Yojna

Aditya Birla SL Bal Bhavishya Yojna is an open-ended solution-oriented scheme focused on planning for a child’s future needs. The fund invests predominantly in equity and equity-related instruments, with the remaining allocation in debt and money market instruments. Its portfolio structure aims to balance long-term growth potential with some debt exposure, depending on the scheme’s asset allocation strategy.

SBI Children's Fund-Savings Plan

SBI Children's Fund - Savings Plan is the conservative variant of SBI’s children’s fund offering. It follows a debt-oriented allocation, with a larger portion invested in fixed income instruments and limited exposure to equities. This structure may appeal to investors looking for relatively lower volatility within the children’s fund category, while still investing towards child-related financial goals.

LIC MF Children’s Fund

LIC MF Children's Fund is an equity-oriented children’s scheme that invests primarily in equity and equity-related instruments. The scheme is designed for long-term child-focused goals and comes with a mandatory lock-in period as per category requirements. Since it invests in equities, its performance can be affected by market movements, and investors should review the scheme documents before investing.

What are Mutual Funds for Children?

Children's mutual funds are solution-oriented mutual fund schemes that invest in a mix of equity and debt instruments, with an objective of building a corpus for long-term goals associated with a child's future. SEBI mandates a lock-in period of five years or until the child attains the age of majority, whichever is earlier, for all children's mutual fund schemes. This structural feature differentiates them from general hybrid or equity funds.

Documents Required for Mutual Fund Investment

The following are some documents required for mutual fund investment:

Application Form

You would need one form to open a mutual fund account and another if you want to opt for an SIP plan. In addition, you will be required to submit an ECS form if you are opting for an electronic transfer from your bank account. Some fund houses may also request that you complete additional forms, such as a risk profile form.

KYC Compliance

You must verify your PAN to comply with the Know Your Customer (KYC) norms for investing in mutual funds. You can register yourself for KYC via CDSL Ventures Limited (CVL). If you are KYC-compliant, you are required to submit the KYC acknowledgement letter or a copy. If you are not KYC-compliant, you need to furnish the following documents:

KYC form
Passport-sized photograph
Identity Proof: PAN with photograph, passport, Aadhaar, driving licence, or voter ID
Address Proof: Aadhaar, passport, driving licence, voter ID card, registered lease or sale agreement of residence, ration card, flat maintenance bill, insurance copy, utility bills for the last three months

How to Invest in Mutual Funds for Children?

Here’s how you can identify and invest in mutual funds for children with Tickertape Mutual Fund Screener -

Launch Tickertape Mutual Fund Screener.
Under the Category search for “Solution Oriented - Children's Fund”.
Sort out the mutual funds based on over 50 fundamental and technical filters.
After identifying the mutual fund that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Tax on Mutual Funds For Children

When it comes to redeeming the mutual funds for children, the capital gains are taxed based on the asset type and holding period:

Capital Gains Type	Holding Period	Tax Rate
Short-Term Capital Gains (STCG)	Less than 12 months	20% for equity-oriented funds
Long-Term Capital Gains (LTCG)	More than 12 months	12.5% on gains above Rs 1.25 lakh per year for equity-oriented funds
STCG and LTCG for debt-oriented plans	Any holding period	Taxed as per the investor’s applicable income tax slab rate

Benefits of Investing in Children's Mutual Funds

Structured Goal-Based Saving

Children's mutual funds are specifically designed for long-term goals tied to a child's future. The mandatory lock-in reinforces the habit of staying invested and reduces the likelihood of premature withdrawals, which can work in favour of long-term corpus building.

Diversified Asset Allocation

Most children's funds invest across both equity and debt instruments. This built-in diversification means the portfolio is not entirely dependent on equity market performance, which may help manage overall volatility compared to a pure equity fund.

Disciplined Long-Term Investing

The lock-in period in children's mutual funds enforces a long-term investment discipline that may be difficult to maintain in open-ended equity funds. Investors who stay invested through market cycles without redeeming early may benefit from the compounding effect over time.

Long-Term Growth Potential

Since child-related goals are often several years away, these funds can benefit from a longer investment horizon. Equity-oriented children’s funds may offer growth potential over time, although returns are subject to market movements.

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Risks of Investing in Children's Mutual Funds

Lock-In Risk

Children's mutual funds usually come with a lock-in period of at least five years or until the child attains majority, whichever is earlier. This limits liquidity, as investors may not be able to redeem units freely during the lock-in period, even if financial needs change.

Market Risk

Children's mutual funds may invest in equity, debt or a mix of both, depending on the scheme. Equity-oriented plans can be affected by stock market volatility, while debt-oriented plans can be influenced by interest rate movements and credit conditions. This can lead to fluctuations in the fund value over time.

Goal-Timeline Risk

These funds are usually linked to child-related goals such as education or future financial needs. If the fund’s investment style does not match the timeline of the goal, the investor may face volatility or lower-than-expected returns close to the time of redemption.

Concentration Risk

Some children’s mutual funds may have higher exposure to specific sectors, asset classes or a limited set of securities. A concentrated portfolio can be more sensitive to adverse movements in those holdings, which may affect the fund’s performance.

Interest Rate Risk in Debt-Oriented Plans

Debt-oriented children's fund plans are sensitive to changes in interest rates. Rising rates can reduce NAV for debt holdings, and the returns may not always keep pace with inflation over the long term.

Factors to Consider While Investing in Children's Mutual Funds

Investment Horizon

Children's mutual funds come with a mandatory lock-in period, usually five years or until the child attains majority, whichever is earlier. The investment horizon depends on the child-related goal, such as education, higher studies or other future financial needs.

Fund Type - Equity vs Debt Orientation

Children's mutual funds may follow an equity-oriented, debt-oriented or hybrid investment approach. Equity-oriented plans have higher exposure to stocks and may experience greater volatility, while debt-oriented plans invest mainly in fixed income instruments and are generally structured for relatively lower volatility.

Expense Ratio

The expense ratio is the annual cost charged by the mutual fund scheme. It is deducted from the fund’s returns and affects the net return received by investors. Since children's mutual funds are often linked to long-term goals, the expense ratio can influence the final investment value over time.

Exit Load and Lock-In Terms

Children's mutual funds have lock-in rules as per the scheme structure. Some schemes may also have exit load conditions depending on the redemption period. These terms define when units can be redeemed and whether any charges apply at the time of withdrawal.

Conclusion

Children’s mutual funds can help investors plan for child-related goals such as education, higher studies and future financial needs through a structured investment approach. However, these funds carry risks such as market volatility, lock-in restrictions, taxation impact, expense ratio and possible mismatch between the fund’s investment style and the investor’s goal timeline. Investors can use the Tickertape Mutual Fund Screener to compare children’s mutual funds based on factors such as returns, risk, expense ratio, AUM and portfolio allocation before making an investment decision.

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Frequently Asked Questions About Mutual Funds For Children

What is a children's mutual fund?
A children's mutual fund is a solution-oriented mutual fund scheme that SEBI mandates to carry a lock-in period of five years or until the child attains the age of majority, whichever is earlier. These funds invest in a mix of equity and debt instruments depending on whether they follow an equity-oriented or debt-oriented plan. They are designed to build a corpus for long-term goals associated with a child's future.

Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
What are the best mutual funds for children in 2026?
As of 8th July 2026, here are the best mutual funds for children based on 3Y CAGR:
1. SBI Children's Fund - Investment Plan
2. ICICI Pru Children's Fund
3. Aditya Birla SL Bal Bhavishya Yojna
4. SBI Children's Fund - Savings Plan
5. LIC MF Children's Fund
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
Is a children's mutual fund the same as a child saving plan?
A children's mutual fund is one type of child saving plan. The broader term includes other instruments such as Sukanya Samriddhi Yojana, Public Provident Fund, National Savings Certificate, and traditional life insurance plans. Children's mutual funds specifically involve market-linked investments through SEBI-regulated schemes, whereas other child saving plans may offer fixed or guaranteed returns with different tax and liquidity characteristics.
How does a SIP for child education planning work?
A systematic investment plan in a children's mutual fund works in the same way as a regular SIP. A fixed amount is invested on a chosen date each month, and units are allotted based on the prevailing NAV. Over time, SIP investing averages the purchase cost across different market levels. Given the mandatory lock-in in children's funds, SIP investments remain locked for five years from the date of each SIP instalment or until the child attains majority. Investors can track and manage their SIP on Tickertape.
What is the taxation of mutual fund for child education?
Children's mutual funds that are equity-oriented (with equity allocation of 65% or more) are taxed under equity capital gains rules. Short-term capital gains on units held for less than 12 months are taxed at 20%. Long-term capital gains on units held for more than 12 months are taxed at 12.5% on gains exceeding Rs 1.25 lakh in a financial year across all equity investments combined. Debt-oriented children's fund plans are taxed at the investor's applicable income slab rate regardless of holding period.
Can I invest in a children's mutual fund in a minor's name?
Yes. Children's mutual funds can be held in the name of a minor, with a parent or legal guardian as the operating guardian of the folio. Once the child turns 18, the folio must be transferred to the major's name, and fresh KYC documentation is required before further transactions can be processed.

Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
How can I start a SIP for child planning on Tickertape?
1. Launch the Tickertape Mutual Fund Screener.
2. Filter by Category: Children's Fund.
3. Compare funds by 3Y CAGR, expense ratio, AUM, and exit load.
4. Click Place Order on the fund page to start a SIP or lumpsum investment.
What is the best investment plan for a child’s future in India?
The best investment plan for a child’s future in India depends on the goal timeline, risk level and liquidity needs. Children’s mutual funds are solution-oriented mutual fund schemes designed for child-related goals, such as education. These funds usually have a lock-in period of at least 5 years or until the child turns 18, whichever is earlier.

Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.