The best investment you'll ever make is in your child's name.
See your corpus, your tax bill, and exactly how much you save by investing in your child's name. Live, with your numbers.
₹
₹500₹1,00,000
Age 5
Age 0Invests until child turns 18Age 17
12%
8%Assumed — not a guarantee18%
Assumptions
Child has no other income at 18 — their full basic exemption (₹4L, new regime FY26-27) is available.
Returns shown are assumed, not guaranteed — actual returns will vary.
Tax laws are as per current Indian income tax rules and may change.
All SIP instalments held over 12 months qualify as LTCG; last 12 months qualify as STCG.
Parent's ₹1.25L LTCG exemption is already used by their own investments.
Child's unused ₹4L basic exemption is applied to STCG first (taxed at 20%, so it saves more there), then any leftover tops up LTCG's own fixed ₹1.25L exemption (Section 198) — up to ₹5.25L shielded in total.
Tax you save in your child's name
₹76,425
On a ₹3,35,69,217 corpus at 18 — you keep ₹3,13,88,690 instead of ₹3,13,12,265
₹1,56,00,000invested
→
LTCG ₹1,78,25,217STCG ₹1,44,000
₹3,35,69,217corpus at 18
Grew 2.2× at 12% p.a. over 13 yrs
What tax does to it
Invested in your name
₹1,79,69,217
₹22,56,952
You keep₹3,13,12,265
Invested in child's name
₹1,79,69,217
₹21,80,527
You keep₹3,13,88,690
Invested in your name
Invested in child's name
₹1,79,69,217
₹1,79,69,217
₹22,56,952
₹21,80,527
You keep
₹3,13,12,265
₹3,13,88,690
Investing in your child's name saves ₹76,425 in taxes
All calculations are illustrative. Consult a tax advisor for your specific situation.
Assumptions
Child has no other income at 18 — their full basic exemption (₹4L, new regime FY26-27) is available.
Returns shown are assumed, not guaranteed — actual returns will vary.
Tax laws are as per current Indian income tax rules and may change.
All SIP instalments held over 12 months qualify as LTCG; last 12 months qualify as STCG.
Parent's ₹1.25L LTCG exemption is already used by their own investments.
Child's unused ₹4L basic exemption is applied to STCG first (taxed at 20%, so it saves more there), then any leftover tops up LTCG's own fixed ₹1.25L exemption (Section 198) — up to ₹5.25L shielded in total.
Investing in your child's name can significantly reduce your tax burden on capital gains. Under current Indian income tax rules, a child with no other income gets a fresh ₹4 lakh basic exemption plus a ₹1.25 lakh LTCG exemption under Section 198 (erstwhile Section 112A) — savings that are unavailable when the same investment is held in a parent's name. This calculator shows you the exact difference across asset classes.