Give your Child a Gift to cherish

Investing in your child's future is more than just a financial decision—it's a commitment to ensuring they have the resources to pursue their dreams. Children's Fund is a mutual fund solution designed to help you build a financial foundation for your child's future needs, whether it’s for higher education, a wedding, starting their own venture, or even generating cash flow from the Fund. Investments can be made through a Systematic Investment Plan (SIP) or as a lump sum.

What documents are required for Investing?

To invest in Children's Fund, you will need:

Birth Certificate of the minor (Date of Birth (DOB) proof of the minor);
Relationship Proof of the minor with Parents/legal guardian;
Parents/Legal Guardian KYC1 documents, including FATCA2;
In case of application(s) made by individual investors under a Power of Attorney (PoA), the KYC documents including FATCA of the POA holder;
Details of the minor’s bank account, for payouts;
Any other document as may be required for KYC and/ or its update.
A Notarized court order in case of court-appointed legal guardian.

Investments can be made through the bank account of the minor, the parent, or the legal guardian of the minor. It can also be made from a joint account of the minor with the parent or legal guardian.

What happens when the beneficiary child reaches the age of majority?

The main condition for investing in the Children's Fund is that the beneficiary child should not have attained majority as on date of the investment.

Upon reaching the age of majority, all transactions, standing instructions, systematic transactions, etc., will be automatically suspended, and the account will be frozen for operation by the guardian. The Mutual Fund will send a notice to Unit holders at their registered correspondence address advising the minor, upon attaining majority, to submit a form for updating the status to “major” along with documents (such as PAN card, proof of bank account, Banker’s attestation of applicant’s signature, nomination form) to change the status of the account from 'minor' to 'major'. KYC of the Unitholder becoming major should also be provided.

After updating the status of the unitholder from minor to major, only redemption transactions and switch-out to any other scheme will be allowed.

Why Invest in HDFC Children's Gift Fund('The Fund')?

Develops Long-Term Financial Discipline

Instill a habit of saving systematically or through lump-sum contributions on special occasions like birthdays or festivals such as Diwali or Rakshabandhan. This encourages you to focus on your financial goals and commit to a strategy that promotes consistency and sound financial prudence.

Compounding

By investing early, you can benefit from the power of compounding, where returns generate additional returns, leading to potential exponential growth.

Diversification

The Fund balances risk and reward by combining the stability of bonds (debt) with the growth potential of stocks (equity). This mix endeavours to protect your investment from market swings.

Flexibility and convenience

You can start with small amounts and increase your contributions over time, adapting to changing financial circumstances.

Professional Fund Management

Funds are managed by experienced fund managers who make informed investment decisions, ensuring that your investment is well-diversified and aligned with your goals.

Why you should start investing now?

Investing in HDFC Children's Gift Fund is a proactive way to save for your child's future. With rising education costs and other expenses, starting early can help alleviate financial stress later on. The fund's long investment horizon helps your investments to grow over time, while aiming to provide a financial cushion that can help your child follow their aspirations.

In summary, HDFC Children's Gift Fund is not just an investment of money—it's an investment in your child's potential. By investing for their future, you are providing them the freedom to explore their dreams and aspirations without financial worry.

Notes:

1 KYC - To invest in the schemes of Mutual Fund (MF), an investor needs to be compliant with the KYC (Know Your Customer) norms. KYC establishes an investor’s identity & address through relevant supporting documents such as prescribed photo id (e.g., PAN card, Aadhaar card) and address proof and In-Person Verification (IPV).

2 FATCA - FATCA stands for the Foreign Account Tax Compliance Act. It requires foreign financial institutions (FFI's) to provide the Internal Revenue Service (IRS) with information on certain investments of US persons invested in accounts outside of the US and for certain non-US entities to provide information about any US owners. FATCA declaration from investors helps ascertain whether they are US Persons