When it comes to planning an investment for your child you need to take a slightly longer time frame in mind. This could be as much as 15-20 years.

With such high time, money should at least quadruple or else you would not gain at all as inflation would eat into your returns.

At the moment for child plans you need not look at only the traditional plans that have been offered from time to time, which in the end would guarantee you only a fixed return.

You can also think a little out of the box, which would help you generate superior returns. Here are a few investment options that you could consider for your child, which are much riskier than the traditional ones

ICICI Prudential Balanced Fund

ICICI Prudential Balanced Fund is a good bet if you are considering a child investment plan. It is a hybrid equity mutual fund scheme which has generated a return of 16 per cent since being launched in 1999.

This return is way above any fixed income yielding schemes that are currently in the market.

The bulk of the funds of the scheme are in blue chip stocks like Infosys and HDFC Bank. The fund also has substantial debt holdings including government securities.

ICICI Prudential Balanced Fund has been rated 5 star by Value Research Online. One can invest in the scheme under the SIP plan where an amount of just Rs 1000 would be needed.

A good option for those looking to generate money through the scheme in the long term.

HDFC Children's Gift Fund

This is another fund that has generated super returns since launch in 2001 and can be considered for a good child investment plan. In fact, it has given a return of almost 19 per cent since 2001. The last three year returns is as high as 23 per cent.

The fund has exposure to several blue chip stocks including the State Bank of India, Motherson Sumi, ICICI Bank, Infosys and Larsen and Toubro.

From a 10-15 year perspective the fund has the ability to generate decent returns. It's important to note that equity mutual funds are risky by nature and their past track record does not guarantee individuals returns.

If one is looking for more secure returns there are various other secure options like PPF.

Sukanya Samriddhi Accounts For The Girl Child

If you have a girl child, the best option would be the Sukanya Samriddhi Account. There are plenty of reasons for the same. One is that the scheme qualifies for tax rebate under Sec 80C of the Income Tax Act.

The other is that the interest income is also exempt from tax.

The current rate of interest on the scheme is 9.1 per cent. This is likely to be revised every year. At the moment the current interest rate of 9.1% is pretty decent and is better than that offered by most banks.

For more details on the Sukanya Samriddhi Scheme you can click here

Conclusion

There is nothing as a best child investment plan. If you have the ability to take risks, you can get higher returns. The two funds mentioned above are high risk investments as a child investment plan.

If you are not willing to take risk, you can stick to safe instruments like PPF and Bank deposits.

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