HDFC Children’s Gift Fund Review

It is one of the oldest mutual fund schemes specially designed for investment in the name of minors.

Previously, Guardian/Parent can invest on the name of the child, but due to SEBI Mandate, The investment amount should be transferred from the child’s bank account.

This scheme has lock-in of 5 Years from the date of the investment or at the child attaining majority(18 Years) which ever is later.

HDFC Children’s Gift Fund Details

  • Fund Launch Date- March2nd,2001(Regular Plan),January 1st,2013
  • Returns since launch-16.76%(Regular Plan),17.01%(Direct Plan)
  • Assets under Management-5,247 crores
  • Expense Ratio-1.90%(Regular Plan),1.03%(Direct Plan)
  • Benchmark-Nifty 50 Hybrid Composite Debt 65:35
  • Turnover-13.02%
  • Fund Manager- Chirag Setalvad(Since 2007 April 2nd)

Investment Details

  • Fund Type- Hybrid(65% Equity,35% Debt)
  • Tax Liability- Equity(as the fund has 65% market cap to equity)
  • Minimum Investment-5,000 Rupees(Lumpsum)
  • Minimum sip amount-500 Rupees
  • Minimum Additional Investment-1000 Rupees
  • Lock-in- 5 Years from the date oof the investment or on the child attaining majority; which ever is later.

Scheme’s Performance-

Year To Date1 Day1 Week1 Month3 Month6 Month1 Year3 Year5 Year7 Year10 Year
Nifty 50 Hybrid
(Benchmark)
27.51-1.010.524.3615.0124.8646.6920.0915.6413.0613.76
HDFC Children’s Gift-Regular Plan Performance
28.89
-0.670.093.198.8924.0546.4419.3614.4314.0415.92
HDFC Children’s Gift-Direct Plan Performance29.76-0.660.113.279.1324.5847.6820.3815.4815.03N.A
As on October20,2021

From the above performance chart, we can conclude that HDFC Children’s Gift fund outperforms in the long-run. Though there is short term underperformance, this scheme is locked for long term(up on child attaining majority-18 years or 5 years from the date of the investment, which ever is later) we can expect decent returns from this scheme if you hold for longer period.

Consult your financial advisor before taking decision to invest in this scheme or not!

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