Do children mutual funds have any lock in period?
The exact nature of lock in period for a children mutual fund will depend on the underlying fund and AMC. Generally most children mutual funds come with a 3 year lock in period or till the child attains the age of 18 whichever happens earlier. Children mutual funds divide their portfolio between equity and debt plans to enable a secure investment route.
Children’s Mutual Funds are specially designed for those investors who want to invest for their child’s future. These funds come with a higher risk factor, but will provide higher returns allowing you to have an extra edge when it comes to beating inflation. Some funds offer special maturity benefits. Unlike the Sukanya Samridhi Yojana (SSY), you can invest for both your boys and girls. Also, you can invest in as many Mutual Funds as you want. The lock in period can be anywhere between 3 years and till the child turns 18.
The SSY scheme can be opened for girl children up to the age of 10 years, whereas you can invest in Mutual Funds for your children with no age limit. NRIs can also invest in these Mutual Funds.
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