4 Key Features Of Mutual Fund Children's Plans

Welcome to FundooMoney, your 24X7 buddy for all your money matters! Like life insurance companies, some mutual funds also provide children’s plans which aim at helping investor save for their children’s future needs such as higher education. An investor wanting to consider them needs to know four important things about them. Here, we will discuss them but in just a moment.

Multiple variants
Children’s plan from mutual funds come in multiple variants in terms of their asset allocation such as equity oriented fund, debt oriented fund, and a hybrid fund, which invests in both equity and debt.

Lock-in
Some children’s plans come with a lock-in period. That helps you maintain an investment discipline for your child’s financial goal.

Higher exit load
To help parents stay invested, these plans have a hefty exit load ranging from 1-5% depending on the investment tenure.

Age limit
Some of the children’s plans from mutual funds come with a barrier on age of entry. This means you cannot invest in schemes after the child has crossed the age.

We hope you found this useful. Do share with us and others on this channel your thoughts about children’s plans by writing in the comments section. For more such actionable personal finance information, subscribe to our channel. Also, visit our website, download our mobile app and stay connected with us on Instagram, Pinterest and Slideshare.