Child plans launched by various Indian mutual funds are an attempt to inculcate long-term investing discipline in parents. They help to earmark funds for specific goals, dividing the portfolio into several categories.
This makes it simpler for a parent to monitor the investment for a particular goal & take corrective steps if the growth does not match the expectations. This segregation is important because each goal has a different time frame and, therefore, requires a different investment mix.
Mutual Fund houses have customised their schemes to suit the desired asset allocation at various stages of the child's life.
Also, the income tax efficiency of mutual funds, especially debt-based schemes, makes them an ideal Long-term investment vehicle.
Mr. Amandeep Chopra, Head (Fixed Income), UTI Mutual Fund said, “When you invest in a fixed deposit for your child, the taxman treats the income as your earning. But when you invest in a mutual fund, there is no tax implication till you redeem the investment.”
UTI Children’s Career Balanced Plan
UTI Children’s Career Balanced Plan is the oldest child plan in the market besides being the one with the largest amount of corpus, a fair indication of the belief shown by the investors in the fund. This fund was launched on Jul 12, 1993 and is bench marked against CRISIL Debt : Hybrid (60: 40); its asset size reads at Rs. 2,728 cr. as on Dec 31, 2011.
The Mutual fund has generated a return about 11% since inception as on 31/12/2011. Funds collected under the Plan will be invested in equities convertible & non convertible debentures / bonds of companies / corporates etc and other capital and money market instruments subject to the condition that
(1) Not less than 60% of the funds will be invested in debt instruments of low to medium risk profile having a rating of A+ and above or equivalent at the time of investment and
(2) Not more than 40% of the funds in equities and equity related instruments.
Mr. Amandeep Chopra also said, “UTI Children’s Career Balanced Fund is an ideal plan suited to meet the various needs of a child at the various important stages of his/her life. This fund objective makes us take that extra bit of care while handling this fund and we are thankful to our investors who have shown so much faith in us over the years.”
Happy Mutual Fund Investing.!
This makes it simpler for a parent to monitor the investment for a particular goal & take corrective steps if the growth does not match the expectations. This segregation is important because each goal has a different time frame and, therefore, requires a different investment mix.
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| Amandeep Chopra, Head (Fixed Income), UTI MF |
Mutual Fund houses have customised their schemes to suit the desired asset allocation at various stages of the child's life.
Also, the income tax efficiency of mutual funds, especially debt-based schemes, makes them an ideal Long-term investment vehicle.
Mr. Amandeep Chopra, Head (Fixed Income), UTI Mutual Fund said, “When you invest in a fixed deposit for your child, the taxman treats the income as your earning. But when you invest in a mutual fund, there is no tax implication till you redeem the investment.”
UTI Children’s Career Balanced Plan
UTI Children’s Career Balanced Plan is the oldest child plan in the market besides being the one with the largest amount of corpus, a fair indication of the belief shown by the investors in the fund. This fund was launched on Jul 12, 1993 and is bench marked against CRISIL Debt : Hybrid (60: 40); its asset size reads at Rs. 2,728 cr. as on Dec 31, 2011.
The Mutual fund has generated a return about 11% since inception as on 31/12/2011. Funds collected under the Plan will be invested in equities convertible & non convertible debentures / bonds of companies / corporates etc and other capital and money market instruments subject to the condition that
(1) Not less than 60% of the funds will be invested in debt instruments of low to medium risk profile having a rating of A+ and above or equivalent at the time of investment and
(2) Not more than 40% of the funds in equities and equity related instruments.
Mr. Amandeep Chopra also said, “UTI Children’s Career Balanced Fund is an ideal plan suited to meet the various needs of a child at the various important stages of his/her life. This fund objective makes us take that extra bit of care while handling this fund and we are thankful to our investors who have shown so much faith in us over the years.”
Happy Mutual Fund Investing.!
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