Start Early: How Parents Can Build a ₹50 Lakh Fund for Their Child

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New Delhi, 18 November 2025: As the cost of education, marriage, and other milestones rises, planning for a child’s financial future has become more important than ever. Experts suggest that starting early with a structured investment plan can help parents accumulate a substantial corpus for their child’s long-term needs.

Mutual Funds for Children
Many parents prefer to open a separate fund in their child’s name for long-term goals like education or marriage. Contributions often begin with small amounts received on birthdays or special occasions and are supplemented with regular deposits over time. One of the reliable options in this space is the ICICI Prudential Children Fund, an open-ended plan designed specifically for children. The fund has a proven track record of delivering consistent returns.

Adaptive Investment Approach
The fund invests in both equity and debt instruments and allows fund managers flexibility to move between asset classes depending on market conditions. During uncertain times, up to 35% of the portfolio may be allocated to debt, while in favorable markets, equity exposure is increased. This adaptive strategy ensures both growth potential and risk mitigation, making it an ideal choice for parents who seek long-term flexibility and active management.

Potential Returns
Historical performance of the fund is impressive. For instance, an investment of ₹10 lakh on 31 August 2001 would have grown to approximately ₹3.3 crore by 31 October 2025, a CAGR of 15.58%, outperforming its benchmark CAGR of 13.46%. A monthly SIP of ₹10,000 over 15 years would have grown a total contribution of ₹29 lakh to ₹2.2 crore, again surpassing the benchmark.

The Importance of Early Investment
Starting early significantly reduces the monthly contribution required to reach financial goals. For example, to accumulate ₹50 lakh by the time a child turns 18:

• Starting at birth: Parents need to invest ₹6,598 per month (total contribution ₹14.25 lakh).
• Starting at age 6: Monthly investment rises to ₹15,671 (total ₹22.56 lakh).
• Starting at age 12: Monthly investment jumps to ₹47,751 (total ₹34.38 lakh).

This demonstrates the real cost of delaying investments: parents who start later must contribute significantly more to achieve the same goal.

Conclusion
Early, disciplined investing harnesses the power of long-term equity growth, allowing parents to build a secure and substantial fund for their child’s future. The key is to start today and stay consistent, turning small beginnings into a bright financial future for the next generation.