HDFC scheme for children

HDFC Mutual Fund has launched a scheme for children called the Children's Gift Fund.

The fund is an open-ended balanced fund and aims at long-term capital appreciation for investors. The scheme is open from January 25 to February 5. The minimum initial investment is Rs 3,000 and in multiples of Rs 1,000 thereafter. Investors can invest in the name of a child less than 18 years of age.

The scheme offers two plans -- Investment Plan and Savings Plan. The Investment Plan is an equity-oriented plan where 60 per cent of the investments would be deployed in equity and equity- related instruments and the balance 40 per cent in debt and money market instruments. The Savings Plan is debt-oriented where 80 per cent would be deployed in debt and money market instruments and 20 per cent in equity and equity-related instruments.

The unit-holders are also entitled to personal accident insurance cover (resident unit-holders only) equivalent to 10 times the face value of the units held by the holder, up to a maximum of Rs 3 lakh per unit holder, subject to certain conditions. -- BL Research Bureau