Children's mutual funds see 160% growth in 5 years
Children's mutual funds in India have quietly exploded, with assets growing 160% since 2020—jumping from ₹9,866 crore to ₹25,675 crore by November 2025.
Even the number of investor accounts (folios) nudged up from 29 to 32 lakh, showing more parents are eyeing these funds for their kids' futures.
Big names dominate—and returns look strong
Just three funds—HDFC Children's Gift Fund, SBI Magnum Children's Benefit Fund, and ICICI Prudential Children's Fund—hold nearly 78% of all money invested in this space.
Returns have been impressive: top schemes clocked CAGRs as high as 34%, and the category average sits at around 17% over five years.
With education costs rising faster than ever (about 11-12% a year), it's no wonder parents are turning to these funds to keep up.
Why does this matter?
If you're wondering why your parents talk about saving early for college or big dreams—it's because costs keep climbing.
These children-focused mutual funds are becoming a go-to way for families to beat inflation and plan ahead.