Скачать или смотреть Reality of the Child Future Plan Mutual fund.

Have you seen ads saying “20% return on mutual funds for your child’s future”? 🤔
Sounds amazing, right? But here’s the reality check 👇

🚨 Blind Spot
That 18–20% return shown in ads is past 3 years’ data only, when the market was booming.
It does NOT mean the same return will continue for the next 10–15 years.

📊 Example: SBI Magnum Children’s Benefit Fund (Investment Plan)
Aggressive Hybrid Fund (65% equity + debt)
High Lock-in (5 years)
Heavy Exit Load (up to 3%)
Marketed as “Child Plan”, but essentially just a hybrid fund

✅ Reality Check
Long-term average returns of equity/hybrid funds: 12–14% CAGR
Not guaranteed 18–20% every year
₹10,000 SIP for 25 years → realistic value ≈ ₹2 Crore (not ₹6 Crore)
💡 Better Alternatives
Diversified Equity / Index / Flexi-cap Funds
Hybrid Funds (ICICI, Kotak, Mirae, Edelweiss) – lower expense, no lock-in
PPF + Mutual Fund combo for safety + growth
Open a Minor Account in your child’s name → disciplined investing

🎯 Key Takeaway
Don’t get misled by flashy ads or agents promising “18% guaranteed return.”
Child plans are not magical — they’re just normal hybrid funds with extra lock-in.
Start SIP early, stay realistic with 12–14% expectation, and you’ll build a solid corpus for your child’s education. 🚀


👉About Lokesh👈
I am Lokesh Tiwari, Here I break down personal finance concepts. Personal finance is a topic that is mandatory to live a peaceful life but still, it is not a part of our education system that's why In India, Financial Literacy is only 27%.

Let's aim together to increase India's financial literacy from 27% to 50%

Lokesh Tiwari
Making India Financially Literate