Also check out in this section... Schemes from Life Insurance Corporation (LIC) - Children Money Back Policy - Jeevan Kishore - Jeevan Sukanya Scheme from Unit Trust of India (UTI) - Children's College and Career Fund - Children’s Gift Growth Fund (CGGF) Scheme from IDBI Mutual Fund Scheme from Kothari Pioneer Children’s Asset Plan Scheme from ICICI

Children's College and Career Fund

Children's College and Career Fund, an open ended Scheme launched in 1993, seeks to fulfil a parent's dream by providing for the cost of higher education etc. of a child through payment of scholarship on yearly/ half yearly basis in a tax friendly manner. Investment made in the Scheme grows through accumulation of bonus units. The rate of accumulation of bonus units is declared every year.

After the child completes 18 years of age, returns will be distributed by way of scholarship in chosen number of installments. The Scholarship amount paid to the child will not be clubbed in the hands of parent/ guardian/ other investor, and will be thus completely tax free as per

Section 10 of Income Tax act.

Features:

1. An open ended (for sale only) growth fund.
2. ii. Any resident or Non-Resident individual including parents, relative as also company, body corporate, eligible institutions can invest in the Scheme, for the benefit of a child below 15 years of age. Investment can be made either for a resident or a Non-Resident child.
3. Investment made in the name of a child is an irrevocable gift.
4. The investor can name an alternate child who will receive the benefit of investment in the unfortunate event of death of the first child.
5. Under Section 10(16) of the Income Tax Act, 1961, scholarship granted to meet the cost of education does not form part of the total income of the child. The amount is not clubbed with the parents\guardian's\other investors income too, making it totally tax-free.
6. The Gift Tax Act, 1958 has abolished the levy of Gift Tax in respect of gifts made on or after 1st October 1998. Thus a gift made under the scheme is exempt from the levy of gift tax without any upper limit. Also, the value of investments in units under the scheme is fully exempt from Wealth Tax.
7. Minimum investment under the Scheme is Rs.2,000/-
8. Units are allotted at NAV plus 3% sales load throughout the year except during the book closure period, which is normally in June every year.
9. Sale and repurchase prices of units are announced every month.