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Children are your pride and joy. Their laughter, dreams, and aspirations light up your life, and you want nothing more but to see them thrive. However, as they grow, the financial demands of education, extracurricular activities, and future milestones can become overwhelming. Don’t let money be a hindrance to their aspirations! Baroda BNP Paribas Children’s Fund is a solution-oriented scheme aimed at securing your child's future financial needs. This scheme is not just an investment; it’s a commitment to nurturing your child’s potential by aiming to provide the financial support necessary for education, extracurricular activities, and life’s important events.
Whether your child dreams of attending a prestigious university or pursuing their passion in sports or arts, this scheme is designed to help turn those dreams into reality. Let’s embark on this journey together and seek to ensure that your child has the resources they need to reach for the stars!
While average inflation hovers around 5-6%, education inflation is skyrocketing at approximately 11% (average from 2003 to 2023). Don’t let rising costs catch you off guard!
Your child may be talented and hardworking, but financial constraints shouldn’t limit their potential. Invest now and aim to ensure their journey continues uninterrupted!
Source: Bankbazaar Survey. Data as of July 2023 (Latest Available Data)
The scheme is specifically structured to meet defined financial goals, such as funding higher education or significant life events. As such the investment strategies are tailored to align with these objectives, shaping the risk & return profiles accordingly.
Mandatory lock-in allows investors to stay invested for longer period, leading to greater compounding of potential returns, enabling substantial wealth accumulation over time.
The scheme aims to invest atleast 80% of its net assets into equities. Equities have historically outperformed other asset classes, making them a cornerstone for future financial success.
Unlocking the Future : A Strategic Approach to Investing - The Scheme aims to invest at least 80% of its net assets in equity and equity-related instruments. The investment process has 2 parameters :
For further details on investment strategy, please refer to SID available on our website www.barodabnpparibasmf.in
| Category | Solution Oriented – Children’s Fund |
| Investment Objective | The primary investment objective of the scheme is to generate long term growth by investing predominantly in a portfolio of equity and equity related instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. |
| Benchmark | Nifty 500 TRI |
| Lock-in Period | Units purchased cannot be assigned/transferred/ pledged/redeemed/ switched-out until completion of 5 years from the date of allotment of Units under the Scheme or till the Unitholder (i.e. beneficiary child) attains the age of majority, whichever is earlier. |
| Fund Manager | Mr Pratish Krishnan |
| Load Structure | Exit Load: If units of the Scheme are redeemed or switched out within 1 year from the date of allotment: 1% If units of the Scheme are redeemed or switched out after 1 year from the date of allotment: Nil |
| Minimum Amount for Application during the NFO & Ongoing Offer |
Minimum Amount for Application during the NFO & Ongoing: A minimum of Rs. 1,000 per application and in multiples of Rs.1 |
| SIP Details: Minimum Application Amount |
(i) Daily, Weekly, Monthly SIP: Rs. 500/- and in multiples of Rs. 1/- thereafter; |
KIM and Editable Application Form
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Click HereChildren’s Fund falls under the category of solution-oriented mutual fund scheme. Its main objective is aiming to assist investors in building a corpus to cover a child's future expenses, including education, skill development, healthcare, financial security, and other essential needs specific to children.
Investing in a Children’s Fund offers several key advantages that cater specifically to the financial needs of parents planning for their child's future.
Here are the primary benefits:
The lock-in period for a solution-oriented Children's Fund is usually at least five years, or until the child reaches the age of majority, whichever is earlier.
When a child reaches the age of 18, the decision making rights for the corpus in Children's Fund will be transferred to the child, allowing them to access the funds for their financial needs. To take control of the funds, the child must complete the KYC (Know Your Customer) process with the Asset Management Company(AMC).
If the parent / legal guardian passes away before the child turns 18, the accumulated funds continue to be in the name of the child. The new Guardian has to provide the necessary documents to the AMC to get registered in the child’s folio.
Lumpsum investment: A minimum of Rs. 1,000 per application and in multiples of Rs.1
Minimum Additional Application Amount: Rs. 1,000 and in multiples of Rs. 1 thereafter.
SIP Details: Minimum Application Amount -
(i) Daily, Weekly, Monthly SIP: Rs. 500/- and in multiples of Rs. 1/- thereafter;
(ii) Quarterly SIP: Rs. 1500/- and in multiples of Rs. 1/- thereafter Frequency Available: Daily, Weekly, Monthly & Quarterly
Only the below can be a registered guardian in the folio
Payments can be accepted from either of the following bank accounts:
Following documents are to be provided at the time of investment:
No, the minor shall be the sole and first holder in the folio. No Joint holders are allowed in the folio.
No, nomination is not allowed in a folio held by a minor.
Yes, however please note for demat applications Minor Investor’s PAN and demat account details are mandatory and the same should be provided on the application form. Demat details provided should be in the name of the Minor. Units cannot be issued to the Guardian’s DEMAT account.
Units will be locked in for 5 years or till the child attains the age of maturity (18 years), whichever is earlier.
Yes.
Illustration -For example in a case where a minor investor of age 17.5 years at the time of investment, completes the process of tax status change after attaining 18 years of age and chooses to redeem before completion of 1 year from the date of allotment, exit load as mentioned above will be applicable.
Special facilities like Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP) and the Systematic Transfer Plan (STP) in respect of a minor’s folio shall be registered and executed only till the date of the minor attaining majority, even if the registration period in the SIP, SWP, STP mandate form might be for a period beyond that date. All systematic transactions in the folio will be ceased/stopped once the minor attains majority (18 yrs of age).
However, SWP and STP can be re-registered by the investor (minor Investor) post attaining majority and completion of the tax status change (minor to major) formalities.
If a redemption request is received before a minor attains majority, redemption payouts would be credited only to the bank account of the MINOR / a bank account where the Minor investor is a Joint Holder with the Guardian.
No. Guardian is not allowed to undertake any transactions once the minor investor attains majority. The folio will be temporarily blocked for all transactions including non-commercial transactions. The minor investor needs to provide a tax status change form along with requisite supporting to RTA. If the request and supporting documentation is in order, RTA will change the tax status of the folio from Minor to Resident Individual/ Non-Resident Individual and the investor can then perform any transaction.
In an unfortunate situation of transmission, below guidelines would be applicable:
Disclaimer In the preparation of the material contained in this document, Baroda BNP Paribas Asset Management India Ltd. (“AMC”) has used information that is publicly available, including information developed in-house. The AMC, however, does not warrant the accuracy, reasonableness and/or completeness of any information. This document may contain statements/opinions/ recommendations, which contain words, or phrases such as “expect”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. The AMC (including its affiliates), Baroda BNP Paribas Mutual Fund (“Mutual Fund”), its sponsor / trustee and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this document in any manner. The recipient alone shall be fully responsible / liable for any decision taken based on this document. All figures and other data given in this document are dated and may or may not be relevant at a future date. Prospective investors are therefore advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of the schemes of Baroda BNP Paribas Mutual Fund. Past performance may or may not be sustained in future and is not a guarantee of any future returns. Please refer to the Scheme Information Document before investing for details of the scheme including investment objective, asset allocation pattern, investment strategy, risk factors and taxation.
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