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With one early investment, a child’s future can expand beyond imagination, growing from Rs 10 lakh to over Rs 3 crore through time, discipline and compounding magic
With timely decisions and steady contributions, parents can build a secure and promising future for their children.
Parents pour their hearts into safeguarding their children’s futures, carefully setting aside whatever they can. Whether it’s the certainty of fixed deposits or the disciplined growth of mutual fund SIPs, every choice is made with one hope to turn today’s savings into tomorrow’s opportunities.
If you, too, want to build a sizeable corpus for your child and are searching for an option that can support their biggest dreams, the ICICI Prudential Children’s Plan could prove extremely useful.
Rising Education Costs Make Early Planning Essential
With countless investment choices available today, a dedicated children’s plan often stands out. Everyone knows how rapidly education costs are rising. Securing a child’s financial future has become essential, yet the expense of higher studies is so steep that not every family can afford it.
However, by planning and investing early, you can build a strong fund by the time your child grows up, one that can comfortably support even their most ambitious aspirations.
Why Mutual Funds Work Best For Long-Term Goals
Mutual funds are among the most effective tools for long-term planning. Children’s mutual fund schemes encourage disciplined investing and offer the potential for higher growth over time. The power of compounding truly shines here, gradually transforming small contributions into substantial wealth.
ICICI Prudential Children’s Fund: A Proven Performer
Among children’s schemes, ICICI Prudential Children’s Fund has maintained a long-standing and dependable track record. This open-ended fund, created specifically for children, has delivered consistent returns over the years. It comes with a minimum lock-in period of five years or until the child becomes an adult, whichever is earlier.
The fund invests across both equity and debt and also allows off-benchmark investments when beneficial, offering flexibility and active management.
A look at the returns clearly shows its strength. If someone had invested Rs 10 lakh in the fund on August 31, 2001, the amount would have grown to approximately Rs 3.3 crore by October 31, 2025. This reflects an impressive annual return of 15.58%.
By comparison, the same investment in the benchmark would have grown to just Rs 2.12 crore, with an annual return of 13.46%.
SIP Performance: Turning Small Amounts Into Crores
The SIP returns of this fund have been impressive as well. A monthly SIP of Rs 10,000 from inception would have amounted to a total investment of Rs 29 lakh, which has grown to Rs 2.2 crore by October 31, 2025. Over a 15-year period, an investment of Rs 18 lakh would have risen to Rs 55.4 lakh, reflecting a return of 13.76 percent.
In comparison, its benchmark delivered only 11.88 percent during the same timeframe. Notably, the fund has consistently outperformed its benchmark over the past one, three and five years.
How Much Should Parents Invest?
Consider parents aiming to accumulate Rs 50 lakh by the time their child turns 18.
Parent A (Starts at Birth)
- Monthly investment: Rs 6,598
- Duration: 18 years
- Total investment: Rs 14.25 lakh
Parent B (Starts at Age 6)
- Monthly investment: Rs 15,671
- Duration: 12 years
- Total investment: Rs 22.56 lakh
Parent C (Starts at Age 12)
- Monthly investment: Rs 47,751
- Duration: 6 years
- Total investment: Rs 34.38 lakh
The cost of delay: Parent B invests Rs 12.3 lakh more than Parent A, and Parent C invests Rs 20.13 lakh more, for the same goal.
The Bottom Line: Start Early, Build More
In short, the earlier you begin, the greater the advantage of long-term equity investing. With timely decisions and steady contributions, parents can build a secure and promising future for their children, and the best time to start is today.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
November 18, 2025, 15:31 IST
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