Beyond the Classroom: Planning for Your Child’s Growing Passions

In urban India, monthly expenses for enrichment activities can vary widely depending on the level of coaching, infrastructure, and specialization.

Illustrative Monthly Costs

Source: Various public sources

Beyond these base fees, additional expenses often include:

Equipment (instruments, sports gear, art supplies)

Certification and competition fees

Travel and accommodation for events

Online subscriptions or specialised workshops

Over time, these costs could compound significantly, sometimes running into lakhs over several years. Which brings us to an important question - when should you start planning?

As your child’s interests begin to take shape, start structured SIP investing:

• Use relatively lower volatility-oriented funds for near- to medium-term needs
• Build a pool for upcoming expenses like hobby classes, gear, and early learning programs

For future milestones like advanced learning or development, consider long-term SIPs in HDFC Children’s Fund to build a dedicated corpus over time.

At the same time, planning for these expenses also presents an opportunity to involve children in the journey. Introducing them to the basics of saving and investing early on can help build financial awareness and discipline. Simple habits 
- like saving towards small goals and understanding that money grows over time, can go a long way in shaping responsible decision-making for the future.

While Systematic Investment Plan (SIP) helps in wealth creation, a Systematic Withdrawal Plan (SWP) could help in structured usage of funds when expenses arise.

SWP - Systematic Withdrawal Plan, SIP - Systematic Investment Plan. *Rate of return is calculated by taking actual SIP returns of HDFC Children’s Fund – Regular Plan for 15 Years (01/05/2001 - 30/04/2016) and SWP for 10 Years (01/05/2016- 01/05/2026). SWP is a facility to withdraw fixed amount periodically from the investments by redeeming units. Thus, withdrawals happen from capital and appreciation portion of the investments. The above table is purely to explain the concept of SWP and should not be construed as providing any kind of investment advice or as a substitute for any kind of financial planning. The above is not an indication/assurance of any return that may be earned by using this facility. Past Performance may or may not be sustained in future and is not a guarantee of any future returns. HDFC Mutual Fund/HDFC AMC is not guaranteeing any returns on investments made in the Scheme. Due to the personal nature of investments and financial planning, investors are advised to consult his/her professional advisor.

• During early years: Invest consistently via SIP to build a corpus
• When expenses begin: Use SWP to withdraw a fixed amount periodically

This approach supports:

Continued investment growth on the remaining corpus

Cash flows for ongoing expenses like classes or coaching

Better financial discipline compared to lump-sum withdrawal

Supporting your child’s passions is no longer just about enrolling them in the right classes—it’s about planning ahead with clarity and discipline.

By combining early planning, SIP-led investing, structured SWP withdrawals, and financial education, parents can create a balanced approach, one that nurtures both dreams and financial well-being.

Because ultimately, the goal is not just to fund your child’s passions… but to empower them with the mindset to sustain them for life.

A. SIP Performance - Regular Plan - Growth Option

Assuming ₹ 10,000 invested systematically on the first Business Day of every month over a period of time. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. Since Inception Date = Date of First allotment in the Scheme / Plan. SIP - Systematic Investment Plan. $ Adjusted for Bonus units declared under the Scheme.

B. Performance - Regular Plan - Growth Option

NAV as on April 30, 2026. ₹280.724 (per unit)

Common notes for table A & B: Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of balanced nature of the scheme where a portion of scheme’s investments are made in debt instruments. The Scheme is co-managed by Mr. Chirag Setalvad (Equity Portfolio) (since April 2, 2007) and Mr.Anil Bamboli (Debt Portfolio) (since October 6, 2022). N.A. - Not Applicable. # NIFTY 50 Hybrid Composite Debt 65:35 Index (Total Returns Index). ##NIFTY 50 Index (TRI). $ Adjusted for Bonus units declared under the Scheme. *Inception Date: March 02, 2001. Past performance may or may not be sustained in future and is not a guarantee of any future returns. Returns greater than 1 year period are Compounded Annualised (CAGR). Load is not taken into consideration for computation of above performance(s). Different plans viz. Regular Plan and Direct Plan have different expense structure. The expenses of the Direct Plan under the scheme will be lower to the extent of the distribution expenses/commission charged in the Regular Plan. The above returns are of Regular Plan - Growth Option. Returns as on April 30, 2026.

For performance of other funds managed by fund manager, Please click here.

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning.
Due to the personal nature of investments, investors are advised to seek professional advice before investing.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.