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 Gift Growth Fund(CGGF)

If you'd like to give a very special gift to a very special child, something that shows your care and your concern, this is just what you have been looking for. The CGGF is a gift that keeps growing with the years. Nobody, just nobody can touch it. When the child becomes an adult, the gift matures. So the child gets the money when he needs it most, to pay for higher education, to help set up a business or a practice, or to help set up a home.

Features:

1. This is an open-ended fund.

2. An assured income distribution @12% p. a. on a pro-rata basis. The income is automatically reinvested in units, so your gift grows at a compound rate. Thus your money becomes more than 10.80 times of the original investment in 21 years.

3. The capital invested in the scheme as well as the returns assured will be protected on the withdrawals made by the child on completing 18 years of age till maturity i.e. on completion of 21 years of age. This protection is guaranteed by Development Reserve Fund of the Trust.

4. No proof of age is necessary.

5. Naming of alternate child, below 15 years of age is allowed to avoid legal procedures in the unfortunate event of the death of the first child.

6. An option given for withdrawal, after 18 years of age either wholly or partially provided such withdrawal does not result in the balance being less than 200 units.

7. The Gift Tax Act, 1958 has abolished the levy of Gift Tax in respect of gifts made on or after October 1st 1998. Thus a gift made under the scheme is fully exempt from levy of gift tax without any upper limit. The value of investments in units under this scheme is fully exempt from Wealth Tax.

8. Income received by all categories of investors under all schemes/plans of the Trust is exempt from Tax under section 10(33) of the Income Tax Act, 1961.

9. The gift can be given by any adult i.e. parent, relative, friend, a guardian appointed by Court or a Company, Body Corporate, Registered Society, Eligible Trust to any Child under 15 years of age.

10. Minimum investment is 200 units @ Rs.10/- p.u. and in multiples of 100 units thereafter. No maximum limit.