Children's Mutual Funds Soar: AUM Jumps 160% in 5 Years, Reaches ₹26,000 Crore

• Children's mutual funds AUM surged 160% in five years, reaching ₹26,000 crore by Nov 2025 from ₹9,800 crore in Nov 2020.
• These Solution Oriented Funds have a lock-in of 5 years or until the child turns 18, enforcing investment discipline for long-term goals.
• Despite significant AUM growth, the number of schemes remains limited (around 12), with 78% of assets concentrated in just three funds.
• Average 3-5 year CAGR returns range from 20-30%, depending on equity exposure; investors advised to focus on long-term returns.
• Key schemes include SBI Magnum Children’s Fund, ICICI Prudential Children’s Fund, HDFC Children’s Gift Fund, Tata Children’s Fund, and UTI Children’s Fund.

Why It Matters: Children's mutual funds show strong growth and discipline for long-term goals like education.