Top 4 children’s mutual funds that delivered over 20 per cent annual return. Check list

Best mutual funds: Wealth creation includes saving money for long term financial goals such as buying a dream house, retirement and children's education. There are some solution-oriented mutual funds which help investors meet these specific financial goals over a period of time.

There are essentially two categories of solution-oriented mutual funds: retirement and children's education. Children's funds constitute a diminutive category in the entire mutual fund universe. There are a total of 12 children's fund schemes with a total AUM of ₹23,523 crore. In contrast, there are a total of 29 retirement schemes (the other sub-section of solution oriented schemes) with a total AUM of ₹31,006 crore.

Children's mutual funds

The schemes which enable retail investors to help save for children's education have a lock-in period of a minimum of five years.

Here we list out the top performing solution oriented (children's) mutual funds which delivered over 20 percent annualised return in the past five years.

(Source: AMFI; returns as on June 13, 2025)

As we can see in the table above, HDFC Children's Fund delivered 21.45 percent in the past five years. And other schemes which delivered more than 20 percent annualised return in the past five years include ICICI Prudential Child Care Fund (Gift Plan), Tata Young Citizens Fund and UTI Children's Equity Fund.

Just to put these figures in the right perspective: when an investment happens to grow at the CAGR (compound annual growth rate) return of 20 percent a year, an investment of ₹1 lakh grows to ₹2.48 lakh. This means it grows to more than double during this period. This is because of compounding.  

Notably, historical returns do not guarantee future returns. In other words just because a scheme has delivered exceptional returns in the past, it does not mean it will deliver good returns in the future as well. 

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

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