Child care plan


#1

Hey investor,
Can you please suggest good plan for child, I have identified “HDFC Childrens Gift Fund” can I buy same fund using coin platform.

If yes, why can’t I able to search the direct plan.
if No, How can I buy such direct fund using other sites.

Thanks


#2

Best to stay away from such funds. Historically these funds have done nothing and they have most often than not underperformed the respective benchmarks.

You can invest in a good open-ended mutual fund. Since you’d be investing on behalf of your kid, this won’t matter. But stay away from any fund that has the word “Child” in the name. It’s nothing but a guilt trip. These funds have been used by the AMCs to just gather money by seliing an emotional pitch.


#3

When you talk about funds for child, then it is assumed that you are investment horizon is very long.
You can follow below two options.

  1. You could invest in a good large-cap blue-chip fund that invest in private enterprises.

Or

  1. You could yourself select 5-6 blue chip large private companies and do lump-sum buying on your own. Generally market gives one-two opportunities in a year for buying. To follow this approach you need a very basic knowledge of stock market … that’s it. No rocket science knowledge. A basic book by Peter Lynch will help a lot