{"id":6316,"date":"2026-02-10T12:00:49","date_gmt":"2026-02-10T12:00:49","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6316"},"modified":"2026-03-05T11:51:11","modified_gmt":"2026-03-05T11:51:11","slug":"child-investment-plan-1-crore-by-20","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/child-investment-plan-1-crore-by-20\/","title":{"rendered":"Building a \u20b91 Crore Corpus for Your Child: A Long-Term SIP Approach"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Raising a child in India is full of hopes and plans. You dream of giving them a strong education, financial security, and the freedom to follow their passions. But alongside these dreams comes a reality check. Every milestone costs money, and those costs are rising faster than most salaries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good college education today can easily cost \u20b915 to \u20b920 lakh. A wedding may require several lakhs more. Even helping your child with a home down payment or startup idea needs careful planning. Waiting until the last minute often leads to stress and compromises.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The good news is this. You do not need to earn a fortune to give your child a strong financial foundation. You simply need to start early and stay consistent. With the right planning, your child can have \u20b91 crore by the age of 20. This is not wishful thinking. It is the result of disciplined investing and the power of compounding.<\/span><\/p>\n<h2><b>Why Start Investing for Your Child Early<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Time is the biggest advantage a parent has. When you invest over a long period, even small monthly amounts can grow into a large corpus.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Starting early helps you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Build a dedicated, goal-based corpus for your child<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beat inflation over the long term<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce pressure on your future income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Teach your child the importance of saving and planning<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When you invest from the early years, your money gets more time to grow. Compounding works best when it is given time, not when rushed.<\/span><\/p>\n<h2><b>Who Is Considered a Minor in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In India, any individual below the age of 18 is legally classified as a minor. Since minors cannot enter into legal contracts, they are not permitted to independently operate bank accounts or make investment decisions on their own.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To enable savings and investments for children, parents or legal guardians are allowed to open and manage accounts on the minor\u2019s behalf. These are commonly referred to as minor accounts or minor folios in mutual funds.<\/span><\/p>\n<h2><b>How Minor Investment Accounts Work<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In a minor mutual fund account, the child is the sole holder of the investment, while the parent or legal guardian acts as the authorised operator. The guardian manages contributions, redemptions, and other transactions until the child reaches adulthood.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To open a minor account, proof of the child\u2019s age is mandatory. Accepted documents typically include a birth certificate, passport, or other government-issued age proof. In addition, the guardian must complete full KYC requirements.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b> <a href=\"https:\/\/www.sebi.gov.in\/legal\/circulars\/may-2023\/investment-in-units-of-mutual-funds-in-the-name-of-minor-through-guardian_71148.html\"><i><span style=\"font-weight: 400;\">SEBI<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">)<\/span><\/i><\/span><\/p>\n<h2><b>What Happens When the Child Turns 18<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Once the child attains the age of 18, the account must be updated to major status. This involves completing fresh KYC for the child and submitting a formal request to the mutual fund or platform. Until this process is completed, the account may be temporarily restricted from transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is important to note that until the account is converted, taxation, documentation, and overall control of the investment remain with the guardian. Timely conversion ensures uninterrupted access and smooth ownership transfer to the child.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b> <a href=\"https:\/\/www.sebi.gov.in\/legal\/circulars\/may-2023\/investment-in-units-of-mutual-funds-in-the-name-of-minor-through-guardian_71148.html\"><i><span style=\"font-weight: 400;\">SEBI<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">)<\/span><\/i><\/span><\/p>\n<h2><b>Mutual Funds via SIP for Child Wealth Planning<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most effective ways to invest for your child is through mutual funds using a <\/span><a href=\"https:\/\/www.paytmmoney.com\/stocks\/corporate-actions\/sip-calculator?source=Homescreen\"><span style=\"font-weight: 400;\">Systematic Investment Plan<\/span><\/a><span style=\"font-weight: 400;\">, commonly known as SIP.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A SIP allows you to invest a fixed amount every month. This removes the need to time the market and helps build discipline.<\/span><\/p>\n<h3><b>Why SIPs Work Well for Long-Term Goals<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Small monthly investments add up over time<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rupee cost averaging reduces market volatility risk<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compounding boosts long-term wealth creation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy to start, modify, or pause<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> ICICI Bank)<\/span><\/i><\/span><\/p>\n<h2><b>Taxation Rules You Should Know<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When investing in a minor\u2019s name, taxation works slightly differently.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capital gains are taxed under the guardian\u2019s income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equity mutual funds attract long-term capital gains tax after one year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under income tax rules, income up to \u20b91,500 per year per child is exempt from clubbing with the guardian\u2019s income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The basic exemption and tax rules of the guardian apply<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once your child turns 18, taxation shifts to their name after account conversion<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> Cleartax)<\/span><\/i><\/span><\/p>\n<h2><b>Can \u20b910,000 a Month Really Become \u20b91 Crore?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, and the math supports it. Let us look at a simple SIP calculation assuming a long-term average return of 15 percent per year.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><b>SIP Calculation Example<\/b><\/span><\/p>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; color: #000000; background-color: #ffffff;\">Details<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; color: #000000; background-color: #ffffff;\">Amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\">Monthly SIP<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">\u20b910,000<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\">Investment Period<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">20 years<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\">Total Invested Amount<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">\u20b924,00,000<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\">Estimated Returns<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">\u20b91,27,59,550<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\">Total Corpus<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">\u20b91,51,59,550<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"font-size: 10pt;\"><b><i>Note:<\/i><\/b><i><span style=\"font-weight: 400;\"> This return assumption is illustrative and based on long-term equity market behaviour. Actual returns may vary depending on market conditions.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-weight: 400;\">This shows how consistent investing over time can turn a relatively modest monthly amount into a sizeable corpus. Even if returns vary, the potential remains significant due to the long investment horizon.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source: <a style=\"color: #0073e6; text-decoration: none;\" href=\"https:\/\/www.paytmmoney.com\/calculators\/sip-calculator\/\"><strong>Paytm Money SIP Calculator)<\/strong><br \/>\n<\/a><\/i><\/b><\/span><\/p>\n<h2>Top Schemes Of Children Mutual Funds Sorted By 1 Year Returns<\/h2>\n<div class=\"wp-block-table\" style=\"display: block; width: 100%; overflow-x: auto; -webkit-overflow-scrolling: touch; border: 1px solid #000000; margin-bottom: 5px;\">\n<table style=\"width: 100%; border-collapse: collapse; min-width: 700px; font-family: Arial, sans-serif; font-size: 15px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; color: #000000; background-color: #ffffff;\">Fund Name<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; color: #000000; background-color: #ffffff;\">1-Year Return (%)<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; color: #000000; background-color: #ffffff;\">AUM (\u20b9 Cr)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\"><a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/scheme\/baroda-bnp-paribas-childrens-fund-direct-growth\/inf251k01ue9\">Baroda BNP Paribas Childrens Fund &#8211; Direct<\/a><\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">16.58%<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">110.06<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\"><a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/scheme\/aditya-birla-sun-life-bal-bhavishya-yojna-wealth-plan-direct-growth\/inf209kb1e84\">Aditya Birla Sun Life Bal Bhavishya Yojna &#8211; Direct<\/a><\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">14.47%<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">1,170.48<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\"><a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/scheme\/union-childrens-fund-direct-growth\/inf582m01jk3#:~:text=About%20Union%20Children's%20Fund%20Direct,2026%20at%204%3A00%20pm.\">Union Childrens Fund &#8211; Direct<\/a><\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">13.62%<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">79.70<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\"><a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/scheme\/sbi-magnum-childrens-benefit-fund-investment-plan-direct-growth\/inf200ka1r07\">SBI Childrens Fund &#8211; Investment Plan &#8211; Direct<\/a><\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">13.18%<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">5,175.56<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #000000; font-weight: bold;\"><a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/scheme\/icici-prudential-child-care-gift-fund-direct-plan\/inf109k01y49\">ICICI Prudential Childrens Fund &#8211; Direct<\/a><\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">11.64%<\/td>\n<td style=\"padding: 12px; border: 1px solid #000000;\">1,377.86<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div class=\"md:hidden lg:hidden xl:hidden\" style=\"text-align: center; margin-top: 10px; margin-bottom: 20px; font-size: 13px; color: #666666; font-family: Arial, sans-serif;\">\u2190 Swipe horizontally to compare fund returns \u2192<\/div>\n<style>\n    @media screen and (min-width: 768px) {<br \/>        .md\\:hidden {<br \/>            display: none !important;<br \/>        }<br \/>    }<br \/><\/style>\n<p><em><span style=\"font-size: 10pt;\">(<strong>Note:<\/strong> Past performance does not guarantee future returns. Data compiled as of February 11, 2026. SEBI has discontinued the solution-oriented mutual fund category, which previously included Retirement Funds and Children\u2019s Funds. These schemes will now be merged with other mutual funds that have similar asset allocation and risk profiles, as part of SEBI\u2019s effort to simplify fund classifications and improve transparency for investors.)<\/span><\/em><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source: <\/i><\/b><i>Moneycontrol)<\/i><\/span><\/p>\n<h2><b>Where Can \u20b91 Crore Help Your Child<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A \u20b91 crore corpus opens multiple possibilities for your child.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher education in India or abroad<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seed capital for a business or startup<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Down payment for a first home<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial independence at a young age<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">More importantly, it gives your child choices. Financial freedom early in life reduces stress and allows them to make decisions based on passion rather than pressure.<\/span><\/p>\n<h2><b>How to Start Investing Today<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Starting is simpler than you may think.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choose a mutual fund that allows minor investments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete KYC for yourself and your child<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Select the SIP amount and investment date<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stay consistent and review annually<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Avoid frequent switching or reacting to short-term market movements. Long-term investing rewards patience.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> ICICI Bank)<\/span><\/i><\/span><\/p>\n<h2><b>Common Mistakes Parents Should Avoid<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delaying investments thinking there is plenty of time<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stopping SIPs during market downturns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choosing products with low growth for long-term goals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mixing child goals with regular household savings<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Keeping your child\u2019s investments separate ensures clarity and discipline.<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Giving your child a \u20b91 crore corpus by age 20 is not about earning more. It is about planning better. By starting early, investing regularly, and staying invested for the long term, you allow compounding to do the heavy lifting.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A monthly SIP of \u20b910,000, started today, can create a powerful financial foundation for your child\u2019s future. The earlier you begin, the lighter the burden becomes later. Your child\u2019s future self will thank you for the decision you make today. Equity-oriented SIPs, when chosen carefully and held patiently, can play a key role in long-term child wealth planning.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b><i>Disclaimer:<\/i><\/b><i><span style=\"font-weight: 400;\"> Investment in the securities market <\/span><\/i><b><i>is<\/i><\/b><i><span style=\"font-weight: 400;\"> subject to market risks. Read all the related documents carefully before investing. This content is purely for information purpose only and in no way is to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Investors are requested to do their own due diligence before investing.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">SEBI Reg No.: Broking \u2013 INZ000240532, Research Analyst \u2013 INH000020086, Depository Participant \u2013 IN-DP-416-2019, Depository Participant Number: CDSL \u2013 12088800, NSE (90165), BSE (6707), MCX (57525), NCDEX (1315), MSEI (85300).<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">Registered Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">For complete Terms &amp; Conditions and Disclaimers, visit<\/span><\/i><a href=\"https:\/\/www.paytmmoney.com\"> <i><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<div style=\"max-width: 100%; margin: 20px 0; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">\n<style>\n        \/* Hides default browser arrow\/triangle for a clean professional look *\/<br \/>        summary::-webkit-details-marker { display: none; }<br \/>        summary { list-style: none; outline: none; }<br \/>    <\/style>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; font-weight: 600; color: #1a202c; font-size: 18px;\">Is it really possible to build \u20b91 crore for my child by age 20?<br \/>\n<span style=\"font-size: 24px; color: #007bff;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6;\">Yes, it is achievable with early and disciplined investing. A monthly SIP of \u20b910,000 invested for 20 years at an average annual return of 15 percent can grow into a corpus of over \u20b91 crore through the power of compounding.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; font-weight: 600; color: #1a202c; font-size: 18px;\">Can I invest in mutual funds in my child\u2019s name?<br \/>\n<span style=\"font-size: 24px; color: #007bff;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6;\">Yes. Parents or legal guardians can open mutual fund accounts in a minor\u2019s name and manage them until the child turns 18. These are known as minor folios and require age proof and guardian KYC.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; font-weight: 600; color: #1a202c; font-size: 18px;\">Which mutual funds are suitable for child wealth planning?<br \/>\n<span style=\"font-size: 24px; color: #007bff;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6;\">Equity mutual funds are suitable for long-term goals beyond 10 years, while hybrid funds work well for medium-term goals. Debt and money market funds can be used for stability and short-term needs based on risk tolerance.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; font-weight: 600; color: #1a202c; font-size: 18px;\">How is taxation handled for investments made in a minor\u2019s name?<br \/>\n<span style=\"font-size: 24px; color: #007bff;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6;\">Until the child turns 18, capital gains from mutual fund investments are taxed under the guardian\u2019s income. After the account is converted to major status, taxation shifts to the child.<\/div>\n<\/details>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Raising a child in India is full of hopes and plans. You dream of giving them a strong education, financial security, and the freedom to follow their passions. But alongside these dreams comes a reality check. Every milestone costs money, and those costs are rising faster than most salaries. A good college education today can<a href=\"https:\/\/www.paytmmoney.com\/blog\/child-investment-plan-1-crore-by-20\/\">Continue reading <span class=\"sr-only\">&#8220;Building a \u20b91 Crore Corpus for Your Child: A Long-Term SIP Approach&#8221;<\/span><\/a><\/p>\n","protected":false},"author":51,"featured_media":6317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[827,6],"tags":[764,766,759,762,760,765,763,761],"class_list":["post-6316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","category-personal-finance","tag-build-1-crore-corpus","tag-child-financial-planning","tag-child-investment-plan","tag-child-wealth-planning","tag-invest-for-child-future","tag-long-term-sip-investment","tag-mutual-funds-for-children","tag-sip-for-child-education"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=6316"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/6317"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=6316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=6316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=6316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}