Radhika Gupta Explains Why Early SIPs For Children Is A Smart Move; Here's What She Said

The Edelweiss CEO has often emphasised the importance of starting young. In 2023, Gupta revealed that she began investing in equities for her son when he was just 6 months old

Gupta also shared that her company has simplified the process for parents to open a new folio for minors directly on their website

Source : X

Radhika Gupta, MD and CEO of Edelweiss Mutual Funds recently shared on X (formerly Twitter) the advantages of starting a Systematic Investment Plan (SIP) in children’s names. The CEO, who previously mentioned that she had done this for her toddler, explained that the strategy benefits both the parents and the children.

"One of the things I've been talking about a lot is the benefit of starting an SIP in your child's name, ideally as soon as possible and for a specific goal. Not only does this help teach good money habits later, but when the folio belongs to the child, you tend to be more goal-oriented and long-term,” she said.

Gupta also shared that her company has simplified the process for parents to open a new folio for minors directly on their website.

One of the things I've been talking about a lot is the benefit of starting an SIP in your child's name, ideally as soon as possible and for a specific goal. Not only does this help teach good money habits later, but when the folio belongs to the child, you tend to be more goal… pic.twitter.com/mA68iURiwc

— Radhika Gupta (@iRadhikaGupta) February 18, 2025

Several internet users commented on her post, one user wrote, “Start an SIP in your child's name at birth with a monthly investment of Rs 10,000 at 12 per cent CAGR. By age 18, you'll have built a corpus of nearly Rs 77 lakhs. That's the magic of compounding early on!”

As a long-time advocate for early investing, the Edelweiss CEO has often emphasised the importance of starting young. In 2023, Gupta revealed that she began investing in equities for her son when he was just six months old. 

"He already has an SIP in large and midcap index funds," Gupta told Mint in an interview. “The reason to own an index fund for my son is that he has an 18-year horizon, and over 18 years, I truly don’t know how funds or markets will evolve. A broad-based fund that gives exposure to Indian economic growth, is all we need. We can top it up later as time passes,” Gupta explained.

In 2022, she also emphasised the immense power of compounding for children. "The earlier you start, the better… What better way to teach them about managing money than by having their own investments?" she remarked.