I would like to know if SIP of Rs 3,000 – Rs 5,000 investment in UTI Children Career Balanced plan is good for my six-year old daughter?- Nivedita Phadke
UTI-Children’s Career Plan (UTI-CCP) is an open-end debt-oriented aggressive hybrid fund which invests a maximum of 40 per cent in equity with the rest in debt and investments can be made in the name of the children up to age of 15 years. The fund has earned 9.07 per cent return in the past three years and 9.24 per cent in the past five years. Considering your daughter is six and you will be investing in SIP for ten years at least, a large-cap fund would be a better proposition for the higher equity allocation which has the potential to earn better in the long run.
You can consider investing DSPBR Top 100 Equity or ICICI Prudential Focused Bluechip Equity fund, which have a proven track record and performance history to invest in. As a caution, you may wish to move your investments to a debt fund as you approach closer to the year when you need the funds for your daughter’s education.