Secure your Child's Future with Axis Children's Fund

If there is one thing parents are serious about, it is for financially securing their child’s future. No parent would want their child to bear any financial burdens. Some parents aspire to give their children a destination wedding, while others wish to save enough to send their children overseas for foreign education. As parents you want to make sure that your child is happy and content throughout their life. However, we live in a world where happiness comes with a cost and hence, it is necessary for parents or parents-to-be, to invest some amount on behalf of their children so that they can gift their children a bundle of happiness in the form of some cash money.

When financial planning, one of the top priorities for every parent should be to invest on behalf of their children. The key to successful financial planning is listing out your short term and long term goals so that you are able to allocate assets evenly in schemes that may hold the potential to offer you with some returns. Building a corpus for securing your child’s future may need you to remain invested for the long run and hence, one should include investing on behalf of their children in the list of their long term financial goals.

If you are someone with a moderately high risk appetite who doesn’t mind giving their investment portfolio a slightly aggressive touch by investing in equities, you may consider investing in solution oriented mutual funds.

What are mutual funds?

Mutual funds are generally owned by AMCs and fund houses who collect money from investors sharing a common investment objective and invest this pool of funds across the Indian economy in multiple money market instruments like equity, debt, government securities, corporate bonds, treasury bills, commercial papers, call money, etc.

SEBI, the regulator of mutual funds in India describes them as, “a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in the offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with the quantum of money invested by them. Investors of mutual funds are known as unitholders.”

What are solution oriented funds?

Solution oriented funds are those mutual funds that aim at providing a solution to the investor’s financial obligations. These mutual funds try to target a specific goal like retirement planning or planning for your child’s future.

What is Axis Children’s Fund?

Axis Children’s Fund is an open ended fund for investment for children, having a lock-in of 5 years or till the child attains age of majority (whichever is earlier). The investment objective of the fund is to generate income by investing in debt and money market instruments along with long-term capital appreciation through investments in equity and equity related instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Axis Children’s Fund does not assure or guarantee any returns.

Benefits of investing in Axis Children’s Fund

• Axis Children's Fund may helps you invest in the name of a child for the future of the child, say education, marriage, or any other long term purpose.
• Any parent can gift an investment like Axis Children's Fund to a minor in the name of the minor.
• Axis Children’s Fund has asset allocation benefit. Money is invested in equities; therefore, it holds great potential for long-term wealth creation. Since a portion of money is also invested in debt and money market instruments, it gives the much-needed cushion in terms of relatively less volatility.
• You can start a monthly SIP in Axis Children's Fund if you want to give your investment a disciplinary approach. Systematic Investment Plan or SIP is an easy and hassle free way to continue investing throughout your investment horizon. With SIP all you need to do is instruct your bank and every month on a predetermined date a fixed amount is debited from your savings account and transferred to your Axis Children’s Fund. If you want to make a one time payment then you may opt for lumpsum investment. One good thing about lumpsum investment is that you are allotted more units in quantum with the money invested and depending on the fund’s existing NAV. Whether you should make a lumpsum investment or start an SIP will totally depend on what you want to achieve through your investment.

If you are new to mutual funds or investing in general, make sure that you seek the help of a professional advisor before investing.

Axis Children’s Fund - Compulsory Lock-In

An open ended fund for investment for children, having a lock-in of 5 years or till the child attains age of majority (whichever is earlier)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.