Children's Day 2025: Why starting small for your child will help build their dreams
Higher education is one of the biggest financial milestones for any family. Starting a SIP early may help you build a dedicated education fund by the time your child reaches college.
- Nov 13, 2025,
- Updated Nov 14, 2025 3:17 PM IST
After the early years of toys and fancy gifts, many parents start wondering, what’s the perfect birthday gift as their child grows older? Ideally, it should be something meaningful, something that can truly make a difference in their life when they become adults. In that sense, gifting a Systematic Investment Plan (SIP) in a Mutual Fund (MF) is a thoughtful and powerful choice.
Unlike conventional gifts that lose their charm over time, a SIP keeps growing in value. It’s not just an investment but a way to build wealth steadily while teaching your child essential financial habits from an early age.
Why choose SIP as a gift?
What makes SIPs stand out is their market-linked growth potential and the discipline they bring. By investing a fixed amount regularly, you’re helping your child learn the importance of saving and investing especially during tough economic times.
This approach also offers two big advantages:
• Rupee-cost averaging: It smooths out market ups and downs by buying more units when prices are low and fewer when prices are high.
• Power of compounding: Reinvested returns generate even greater growth over time.
On top of that, gains are taxed under your slab, while your child is a minor, and after they turn 18, they are taxed usually at a lower rate because of comparatively lower income.
How SIPs support higher education goals?
Higher education is one of the biggest financial milestones for any family. Starting a SIP early may help you build a dedicated education fund by the time your child reaches college. This can cover tuition, living expenses, or even overseas education, without relying on loans. By planning ahead, you can reduce the need for student loans, giving your child the freedom to start their career.
Beyond the money, SIPs teach patience and long-term planning. Watching small, regular investments grow into a meaningful amount helps children appreciate the value of consistency.
A strategic step beyond gifting:
When parents choose to invest in a SIP for their child, they’re not merely setting aside money they are sowing the seeds of financial awareness, discipline, and responsibility. As the child grows and begins to understand how regular investments accumulate into meaningful wealth, it instils a sense of pride and ownership. This early exposure to financial literacy builds confidence, helping them make smarter money decisions in adulthood.
Moreover, a SIP serves as a foundation for lifelong financial independence. The habit of investing regularly, learned through such an early gift, can encourage children to continue the practice once they start earning. It helps them appreciate the value of patience and consistency virtues that not only drive financial success but also contribute to personal growth. Over time, what began as a small monthly contribution can transform into a powerful financial asset that supports their aspirations, whether it’s pursuing higher education, starting a business, or buying their first home.
By starting early, parents give their children the priceless advantage of time, compounding, and confidence, a legacy that truly keeps on giving.
Gifting a SIP in a Mutual Fund is far more than a financial gesture—it’s a thoughtful investment in your child’s future. Unlike toys or short-lived presents, a Systematic Investment Plan (SIP) grows steadily over time, leveraging the twin benefits of compounding and rupee-cost averaging. These principles ensure that even small, regular contributions can accumulate into significant wealth over the years.
This gift goes beyond monetary value—it supports major life milestones such as education, career aspirations, or even entrepreneurial dreams. More importantly, it instills financial discipline and awareness from an early age, teaching your child the importance of planning and patience. By starting today, you give them the priceless advantage of time, which is the most powerful ally in wealth creation.
Disclaimer: This disclaimer informs readers that the views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to the author's employer, organization, committee, or other group or individual. The information in this article alone is not sufficient and should not be used for the development or implementation of an investment strategy. The sectors mentioned herein are used to explain the concept and is for illustration purpose only. Past performance may or may not be sustainable in future and is not a guarantee of any future returns. Neither the Sponsors/the AMC/ the Trustee Company/ their associates/ any person connected with it, accepts any liability arising from the use of this information.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
(Views are personal; the author is Fund Manager, Equity at LIC Mutual Fund Asset Management Ltd)
After the early years of toys and fancy gifts, many parents start wondering, what’s the perfect birthday gift as their child grows older? Ideally, it should be something meaningful, something that can truly make a difference in their life when they become adults. In that sense, gifting a Systematic Investment Plan (SIP) in a Mutual Fund (MF) is a thoughtful and powerful choice.
Unlike conventional gifts that lose their charm over time, a SIP keeps growing in value. It’s not just an investment but a way to build wealth steadily while teaching your child essential financial habits from an early age.
Why choose SIP as a gift?
What makes SIPs stand out is their market-linked growth potential and the discipline they bring. By investing a fixed amount regularly, you’re helping your child learn the importance of saving and investing especially during tough economic times.
This approach also offers two big advantages:
• Rupee-cost averaging: It smooths out market ups and downs by buying more units when prices are low and fewer when prices are high.
• Power of compounding: Reinvested returns generate even greater growth over time.
On top of that, gains are taxed under your slab, while your child is a minor, and after they turn 18, they are taxed usually at a lower rate because of comparatively lower income.
How SIPs support higher education goals?
Higher education is one of the biggest financial milestones for any family. Starting a SIP early may help you build a dedicated education fund by the time your child reaches college. This can cover tuition, living expenses, or even overseas education, without relying on loans. By planning ahead, you can reduce the need for student loans, giving your child the freedom to start their career.
Beyond the money, SIPs teach patience and long-term planning. Watching small, regular investments grow into a meaningful amount helps children appreciate the value of consistency.
A strategic step beyond gifting:
When parents choose to invest in a SIP for their child, they’re not merely setting aside money they are sowing the seeds of financial awareness, discipline, and responsibility. As the child grows and begins to understand how regular investments accumulate into meaningful wealth, it instils a sense of pride and ownership. This early exposure to financial literacy builds confidence, helping them make smarter money decisions in adulthood.
Moreover, a SIP serves as a foundation for lifelong financial independence. The habit of investing regularly, learned through such an early gift, can encourage children to continue the practice once they start earning. It helps them appreciate the value of patience and consistency virtues that not only drive financial success but also contribute to personal growth. Over time, what began as a small monthly contribution can transform into a powerful financial asset that supports their aspirations, whether it’s pursuing higher education, starting a business, or buying their first home.
By starting early, parents give their children the priceless advantage of time, compounding, and confidence, a legacy that truly keeps on giving.
Gifting a SIP in a Mutual Fund is far more than a financial gesture—it’s a thoughtful investment in your child’s future. Unlike toys or short-lived presents, a Systematic Investment Plan (SIP) grows steadily over time, leveraging the twin benefits of compounding and rupee-cost averaging. These principles ensure that even small, regular contributions can accumulate into significant wealth over the years.
This gift goes beyond monetary value—it supports major life milestones such as education, career aspirations, or even entrepreneurial dreams. More importantly, it instills financial discipline and awareness from an early age, teaching your child the importance of planning and patience. By starting today, you give them the priceless advantage of time, which is the most powerful ally in wealth creation.
Disclaimer: This disclaimer informs readers that the views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to the author's employer, organization, committee, or other group or individual. The information in this article alone is not sufficient and should not be used for the development or implementation of an investment strategy. The sectors mentioned herein are used to explain the concept and is for illustration purpose only. Past performance may or may not be sustainable in future and is not a guarantee of any future returns. Neither the Sponsors/the AMC/ the Trustee Company/ their associates/ any person connected with it, accepts any liability arising from the use of this information.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
(Views are personal; the author is Fund Manager, Equity at LIC Mutual Fund Asset Management Ltd)