Synopsis: Children’s mutual funds help parents build a long-term corpus for goals such as higher education and marriage. This article compares the top six children’s mutual funds based on their three-year performance, along with their key fund metrics.
Children’s Mutual Funds are solution-based mutual fund investments that are intended to assist parents in establishing a corpus for the future needs of their children. The mutual funds are invested in a blend of equity and debt instruments and have a compulsory lock-in period of 5 years or until the child becomes an adult, whichever is earlier.
Top 6 Children’s Mutual Funds (3-Year Performance)
1. SBI Children’s Fund Investment Plan
- NAV: ₹52.33
- AUM: ₹6,387.01 Cr
- Expense Ratio: 1.17%
- Exit Load: 3% (within 1 year), 2% (1–2 years), and 1% (2–3 years) for units not subject to the lock-in period.
- Performance Snapshot
- 3-Year CAGR: 23.7%
- 3-Year Absolute Return: 89.8%
- 5-Year CAGR: 25.2%
- 5-Year Absolute Return: 207.9%
2. ICICI Prudential Children’s Fund
- NAV: ₹364.81
- AUM: ₹1,407.83 Cr
- Expense Ratio: 2.24%
- Exit Load: NIL
- Performance Snapshot
- 3-Year CAGR: 16.6%
- 3-Year Absolute Return: 58.7%
- 5-Year CAGR: 14.0%
- 5-Year Absolute Return: 92.7%
3. LIC MF Children’s Fund
- NAV: ₹37.48
- AUM: ₹15.06 Cr
- Expense Ratio: 1.51%
- Exit Load: NIL
- Performance Snapshot
- 3-Year CAGR: 11.1%
- 3-Year Absolute Return: 37.2%
- 5-Year CAGR: 9.1%
- 5-Year Absolute Return: 54.7%
4. HDFC Children’s Fund
- NAV: ₹323.21
- AUM: ₹10,114.42 Cr
- Expense Ratio: 1.04%
- Exit Load: NIL
- Performance Snapshot
- 3-Year CAGR: 11.0%
- 3-Year Absolute Return: 36.9%
- 5-Year CAGR: 12.0%
- 5-Year Absolute Return: 76.6%
5. UTI Children’s Equity Fund
- NAV: ₹90.34
- AUM: ₹1,087.38 Cr
- Expense Ratio: 1.18%
- Exit Load: NIL
- Performance Snapshot
- 3-Year CAGR: 10.7%
- 3-Year Absolute Return: 35.7%
- 5-Year CAGR: 9.5%
- 5-Year Absolute Return: 57.3%
6. Axis Children’s Fund
- NAV: ₹29.78
- AUM: ₹872.88 Cr
- Expense Ratio: 1.55%
- Exit Load: 3% (within 1 year), 2% (1–2 years), and 1% (2–3 years) for units not subject to the lock-in period.
- Performance Snapshot
- 3-Year CAGR: 10.0%
- 3-Year Absolute Return: 33.2%
- 5-Year CAGR: 8.5%
- 5-Year Absolute Return: 50.3%
Comparison Table
Note: NAV, AUM, expense ratio and other fund details are sourced from Groww as of June 25, 2026.
Who Should Invest in Children’s Funds?
Mutual fund schemes for children can be considered ideal for those parents or guardians that aim to create a specific fund for their child’s future. Such funds would be appropriate for individuals that have a long-term investment horizon of at least five years and are open to accepting market-linked returns with the risk of short-term volatility. At the same time, it could be an attractive investment strategy for people wishing to make investments on a regular basis using SIPs.
Key Takeaways
- SBI Children’s Fund Investment Plan had a CAGR of 23.7% during the past three years.
- The children’s mutual funds are designed to meet your long-term objectives such as paying for your child’s college or marriage.
- These schemes have a mandatory lock-in of 5 years and hence can be considered only when you do not require immediate liquidity.
- The rate of return is market-linked; therefore, it may vary in the short run.
- However, there is a higher chance of wealth creation in the long run.
- Do not invest in any scheme purely because of its high returns; instead take into consideration other factors like expense ratio, consistency, AUM, etc.
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
