28 Oct 2025 | 5 Mins Read
Mutual Fund Comparison: Lock-in, Taxation, and Exit Load Rules Discussed
Flipitmoney
Child MFs in India have a lock-in period of 5 years or till the child turns 18, with an exit penalty of 4% for premature withdrawals. They fall under "solution-oriented children's funds" with a primary aim of long-term capital growth. Investors must understand the fine print, including restrictions on guardian changes or partial withdrawals, and account control shifts to the child at age 18.