Top performers include Dixon Technologies with an impressive 193.03% 1-year return, HDFC Asset Management with 64.50%, and Tata Consultancy Services with 22.75%. Additionally, SBI Life Insurance delivered a solid 18.16% return, while MRF showed a steady 11.70%. These stocks represent robust growth opportunities and financial stability for long-term investments.
The table below highlights the best stocks for kids to invest in this Children’s Day 2024 based on the highest market capitalisation and 1-year return.
| Stock Name | Close Price ₹ | Market Cap (In Cr) | 1Y Return % |
| Tata Consultancy Services Ltd | 4150.90 | 1497761.6 | 22.75 |
| ITC Ltd | 477.90 | 601841.3 | 9.37 |
| Maruti Suzuki India Ltd | 11300.15 | 356980.54 | 9.47 |
| Titan Company Ltd | 3120.85 | 281818.71 | -5.77 |
| Avenue Supermarts Ltd | 3889.10 | 255237.03 | 4.76 |
| Nestle India Ltd | 2262.85 | 219403.6 | -6.81 |
| SBI Life Insurance Company Ltd | 1589.85 | 160703.59 | 18.16 |
| HDFC Asset Management Company Ltd | 4517.15 | 96094.23 | 64.50 |
| Dixon Technologies (India) Ltd | 15698.50 | 93629.91 | 193.03 |
| MRF Ltd | 121025.95 | 51578.05 | 11.70 |
Content:
- Introduction Of Best Stocks to Buy For Child In India
- Why Invest in Stocks for Children?
- Risks of Investing In The Top Stocks For Children
- Best Types of Stocks for Children
- How to Choose the Right Stocks for Children?
- How to Start Investing in Stocks for Children?
- Top Stocks For Kids This Children’s Day 2024 – FAQs
Introduction Of Best Stocks to Buy For Child In India
Tata Consultancy Services Ltd
Tata Consultancy Services Limited (TCS) is an Indian company that offers information technology (IT) services, consulting, and business solutions. It serves various industries including Banking, Capital Markets, Consumer Goods and Distribution, Communications, Media, and Information Services, Education, Energy, Resources, and Utilities, Healthcare, High Tech, Insurance, Life Sciences, Manufacturing, Public Services, Retail, and Travel and Logistics.
Its services encompass Cloud, Cognitive Business Operations, Consulting, Cybersecurity, Data and Analytics, Enterprise Solutions, IoT and Digital Engineering, Sustainability Services, TCS Interactive, TCS and AWS Cloud, TCS Enterprise Cloud, TCS and Google Cloud, as well as TCS and Microsoft Cloud.
- Stock Name: Tata Consultancy Services Ltd
- Market Cap: Rs 1,497,761.60 crore
- Close Price: Rs 4,150.90
- 6-Month Return: 4.37%
- 1-Month Return: -2.85%
- 1-Year Return: 22.75%
- Distance from 52-Week High: 10.63%
- 5-Year Average Net Profit Margin: 19.22%
- 5-Year CAGR: 14.28%
ITC Ltd
ITC Limited, a holding company based in India, operates through several segments. These segments include Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper and Packaging, and Agri-Business.
In the FMCG segment, the company offers a variety of products such as cigarettes, cigars, personal care items, safety matches, and packaged foods like staples, snacks, dairy products, and beverages. The Paperboards, Paper, and Packaging segment focuses on specialty paper and packaging solutions. The Agri-Business segment deals with various agricultural commodities like wheat, rice, spices, coffee, soya, and leaf tobacco.
- Stock Name: ITC Ltd
- Market Cap: Rs. 601,841.30 crore
- Close Price: Rs. 477.90
- 6-Month Return: 8.37%
- 1-Month Return: -6.25%
- 1-Year Return: 9.37%
- Distance from 52-Week High: 10.59%
- 5-Year Average Net Profit Margin: 26.64%
- 5-Year CAGR: 12.90%
Maruti Suzuki India Ltd
Maruti Suzuki India Limited is involved in the manufacturing, purchasing, and selling of motor vehicles, components, and spare parts. The company focuses on producing and selling both passenger and commercial vehicles.
It also offers aftermarket parts and accessories under the brand names Maruti Suzuki Genuine Parts and Maruti Suzuki Genuine Accessories. In addition, the company facilitates the sale of pre-owned cars, provides fleet management services, and offers car financing. Maruti Suzuki’s vehicles are sold through three channels: NEXA, Arena, and Commercial.
- Stock Name: Maruti Suzuki India Ltd
- Market Cap: Rs 356980.54 crore
- Close Price: Rs 11300.15
- 6-Month Return: -9.91%
- 1-Month Return: -9.74%
- 1-Year Return: 9.47%
- Percentage Away from 52-Week High: 21.06%
- 5-Year Average Net Profit Margin: 6.70%
- 5-Year CAGR: 9.43%
Titan Company Ltd
Titan Company Limited is an India-based consumer lifestyle company that manufactures and sells a variety of products including Watches, Jewellery, Eyewear, and other accessories. The company is divided into segments such as Watches and Wearables, Jewellery, Eyewear, and Others.
The Watches and Wearables segment encompasses popular brands like Titan, Fastrack, Sonata, and more. The Jewellery segment includes brands such as Tanishq, Mia, and Zoya. The Eyewear segment is represented by the Titan EyePlus brand. The company also operates in other sectors such as Aerospace & Defence, Automation Solutions, Fragrances, Accessories, and Indian dress wear.
- Stock Name: Titan Company Ltd
- Market Cap: Rs 281818.71 crore
- Close Price: Rs 3120.85
- 6-Month Return: -4.26%
- 1-Month Return: -12.23%
- 1-Year Return: -5.77%
- Distance from 52-Week High: 24.55%
- 5-Year Average Net Profit Margin: 6.75%
- 5-Year CAGR: 21.96%
Avenue Supermarts Ltd
Avenue Supermarts Limited, an Indian company, specializes in organized retail and manages supermarkets under the brand name DMart. DMart is a chain of supermarkets offering a variety of products, primarily focusing on food, non-food FMCG, general merchandise, and apparel categories.
Each DMart store carries a wide selection of home utility items such as food, toiletries, beauty products, clothing, kitchenware, bed and bath linens, home appliances, and more. The company provides products across multiple categories including home utilities, dairy and frozen foods, fruits and vegetables, crockery, toys, kids’ and ladies’ apparel, men’s clothing, home, and personal care products, groceries, and staples.
- Stock Name: Avenue Supermarts Ltd
- Market Cap: Rs 255,237.03 crore
- Close Price: Rs 3,889.10
- 6-Month Return: -19.09%
- 1-Month Return: -14.64%
- 1-Year Return: 4.76%
- Distance from 52-Week High: 41.03%
- 5-Year Average Net Profit Margin: 5.01%
- 5-Year CAGR: 14.58%
Nestle India Ltd
Nestle India Limited, an Indian company, primarily operates in the food industry. The company’s products are categorized into Milk Products and Nutrition, Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages, and Confectionery.
Under the Milk Products and Nutrition group, Nestle offers a range of items such as dairy whitener, condensed milk, UHT milk, yogurt, infant formula, baby food, and nutrition for healthcare. The Prepared Dishes and Cooking Aids group includes noodles, sauces, seasonings, pasta, and cereals. Powdered and Liquid Beverages consist of instant coffee, instant tea, and ready-to-drink beverages.
- Stock Name: Nestle India Ltd
- Market Cap: Rs 219403.60 crore
- Close Price: Rs 2262.85
- 6-Month Return: -10.88%
- 1-Month Return: -11.73%
- 1-Year Return: -6.81%
- Distance from 52-Week High: 22.77%
- 5-Year Average Net Profit Margin: 14.97%
- 5-Year CAGR: 9.35%
SBI Life Insurance Company Ltd
SBI Life Insurance Company Limited, headquartered in India, provides life insurance services through three distinct segments: Participating, Non-Participating, and Linked segments. The Participating segment covers various categories such as Individual Life, Individual Pension, Group Pension, and Variable Insurance.
The Non-Participating segment includes Individual Life, Individual Pension, Group Savings, OYRGTA, Group Others, Annuity, Health, and Variable Insurance. In the Linked segment, it offers Individual, Group, and Pension insurance options.
- Stock Name: SBI Life Insurance Company Ltd
- Market Cap: Rs 160703.59 crore
- Close Price: Rs 1589.85
- 6-Month Return: 11.43%
- 1-Month Return: -11.06%
- 1-Year Return: 18.16%
- Percentage Away from 52-Week High: 21.77%
- 5-Year Average Net Profit Margin: 2.05%
- 5-Year CAGR: 10.11%
HDFC Asset Management Company Ltd
HDFC Asset Management Company Limited serves as a mutual fund manager, offering asset management services to HDFC Mutual Fund as well as providing portfolio management and advisory services to clients.
Their range of products includes various investment options, such as mutual funds (both active and passive), portfolio management services, and alternative investment opportunities designed to meet the diverse needs of their customers. The company also offers financial management, advisory, brokerage, and consulting services, with a widespread network of 228 investor service centers in over 200 cities.
- Stock Name: HDFC Asset Management Company Ltd
- Market Cap: Rs 96,094.23 crore
- Close Price: Rs 4,517.15
- 6 Month Return: 21.57%
- 1 Month Return: 10.17%
- 1 Year Return: 64.50%
- Distance from 52 Week High: 7.68%
- 5 Year CAGR: 7.19%
Dixon Technologies (India) Ltd
Dixon Technologies (India) Limited is a company located in India that specializes in electronic manufacturing services. Operating within the Electronics Goods segment, the company offers design and manufacturing solutions for a wide range of products such as consumer durables, home appliances, lighting, mobile phones, security devices, set-top boxes, wearables, and medical equipment to customers globally.
Additionally, the company provides repair and refurbishment services for LED TV panels. Dixon Technologies’ divisions cover various areas including Consumer Electronics, Home Appliances, Lighting Solutions, Mobile Phones, Security Surveillance Systems, Reverse Logistics, Medical Electronics, Set Top Boxes, and IT Hardware.
- Stock Name: Dixon Technologies (India) Ltd
- Market Cap: Rs. 93,629.91 crore
- Close Price: Rs. 15,698.50
- 6-Month Return: 86.62%
- 1-Month Return: 16.20%
- 1-Year Return: 193.03%
- Distance from 52-Week High: 1.28%
- 5-Year Average Net Profit Margin: 2.23%
- 5-Year CAGR: 95.78%
MRF Ltd
MRF Limited, a holding company based in India, specializes in the manufacturing and sales of tires, tubes, flaps, tread rubber, and dealing in rubber and rubber chemicals. In addition, the company’s international operations cover a wide range of tire categories including heavy-duty truck/bus tires, light trucks, passenger cars, motorsports, and more.
The company’s sports goods comprise the Virat Kohli range, English Willow range, Kashmir Willow range, and protective gear. MRF Limited’s wholly-owned subsidiaries include MRF Corp Ltd., MRF Lanka Pvt. Ltd., and MRF SG PTE LTD.
- Stock Name: MRF Ltd
- Market Cap: Rs 51,578.05 crore
- Close Price: Rs 121,025.95
- 6-Month Return: -4.46%
- 1-Month Return: -8.11%
- 1-Year Return: 11.70%
- Percentage Away from 52-Week High: 25.13%
- 5-Year Average Net Profit Margin: 6.25%
- 5-Year CAGR: 13.43%
Why Invest in Stocks for Children?
Investing in stocks for children fosters financial literacy and secures their future by leveraging the power of compounding. It helps build a long-term corpus for milestones like education, marriage, or entrepreneurship. Selecting companies with strong fundamentals ensures steady growth while teaching kids the value of patience and smart investing.
Stocks in industries aligned with children’s needs, such as education, consumer goods, or technology, make relatable choices, encouraging kids to learn about businesses and financial planning from an early age.
Risks of Investing In The Top Stocks For Children
The main risk of investing in stocks for children is market volatility, where stock prices can fluctuate significantly over time, potentially leading to short-term losses. While long-term investment mitigates this, it requires patience and a clear financial goal.
- Economic Uncertainty: Broader economic factors like recessions or inflation can impact stock performance, affecting the portfolio’s value and growth potential.
- Industry-Specific Risks: Some industries face rapid changes due to technological disruption or regulatory challenges, increasing risks in specific stock investments.
- Company Performance Issues: Poor management decisions or financial instability can lead to underperformance, adversely affecting returns on individual stocks.
- Liquidity Risks: Certain stocks may lack liquidity, making it challenging to sell them quickly during emergencies or unfavorable market conditions.
- Over-Reliance on Specific Stocks: Concentrating investments in a few stocks increases vulnerability to losses if those companies underperform or face challenges. Diversification is crucial to mitigating this risk.
Best Types of Stocks for Children
The best types of stocks for children to invest in should focus on sectors that promise stability, growth, and long-term returns, aligning with their future financial goals. These sectors cater to essential needs, technological advancements, and lifestyle aspirations, offering a robust foundation for diversified investments:
- FMCG – Foods: These stocks represent companies providing essential food items that maintain consistent demand across economic cycles. Their steady growth and resilience make them ideal for long-term investments, helping build a reliable financial corpus.
- IT Services & Consulting: With the world increasingly digital, IT companies drive innovation and long-term growth. Investing in this sector introduces children to the importance of technology and positions their portfolio for potential high returns over the years.
- Precious Metals, Jewellery & Watches: Companies in this sector offer stability and growth due to the evergreen demand for precious items. They also introduce children to the idea of investing in tangible and appreciating assets.
- Insurance: This sector represents financial security and consistent returns, teaching children the value of safeguarding against risks. Insurance companies benefit from recurring premium income, ensuring steady growth and reliable long-term returns.
- Asset Management: Stocks in this sector expose children to wealth creation and the importance of financial planning. These companies manage large investment portfolios, offering steady revenue streams and growth aligned with the broader financial market.
How to Choose the Right Stocks for Children?
To choose the right stocks for children, prioritize companies with strong fundamentals, a proven track record, and consistent growth. Focus on sectors aligned with long-term stability, such as FMCG, technology, and insurance.
Look for blue-chip companies with high market capitalization and low volatility to minimize risks. Diversify across industries to balance growth potential and risk exposure. Consider investing in companies that resonate with children, like those producing consumer goods or innovative technologies, to spark their interest. Always research market trends, company performance, and financial health.
How to Start Investing in Stocks for Children?
Starting to invest in stocks for children involves careful planning and the right approach to ensure long-term financial growth. Here are key steps to begin investing for your child:
- Open a Custodial Account: Create a Demat and trading account under your guardianship with a reliable broker like Alice Blue.
- Set Clear Goals: Define financial objectives, such as funding higher education or building a future corpus.
- Research and Select Stocks: Choose fundamentally strong companies in stable sectors like FMCG, IT, or insurance.
- Diversify Portfolio: Spread investments across different industries to reduce risk and enhance stability.
- Start with Blue-Chip Stocks: Invest in established companies with consistent performance and lower volatility.
- Monitor and Review: Regularly check the portfolio’s performance and align it with long-term goals.
Top Stocks For Kids This Children’s Day 2024 – FAQs
The Best Stocks For Children #1: Tata Consultancy Services Ltd
The Best Stocks For Children #2: ITC Ltd
The Best Stocks For Children #3: Maruti Suzuki India Ltd
The Best Stocks For Children #4: Titan Company Ltd
The Best Stocks For Children #5: Avenue Supermarts Ltd
The top 5 stocks are based on market capitalization.
The best way to teach your child about stocks is by involving them in the investment process. Use simple examples to explain concepts like ownership, profits, and risks. Introduce them to kid-friendly companies they recognize, like toy or food brands. Utilize mock portfolios or child-friendly apps to practice. Encourage questions and foster curiosity to build financial literacy early.
You can start investing for your child as early as their birth. The earlier you begin, the more time you give investments to grow through compounding. Custodial accounts can be opened under a guardian’s name for minors. Start with long-term investments in stable sectors, such as education funds or stocks, to align with future financial goals like higher education or milestones.
To pick the right stocks for your child, focus on companies with strong fundamentals, consistent growth, and long-term stability. Choose stocks in essential sectors like FMCG, technology, or insurance, which align with sustained demand. Prioritize blue-chip companies for reliability and low risk. Diversify investments to reduce exposure to market fluctuations, and involve your child in the decision-making process to foster learning.
To start investing in stocks for children, open a custodial account with a reliable broker like Alice Blue. Choose long-term investments in sectors like FMCG or technology for stability and growth. Diversify the portfolio to balance risk and reward. Begin with blue-chip stocks for reliability, and involve your child to teach them the basics of investing early.
Review your child’s investments every six months to ensure they align with long-term goals. Monitor company performance, market trends, and any sectoral changes that could impact returns. Avoid overreacting to short-term market fluctuations. Periodic reviews help make informed adjustments, ensuring the portfolio remains diversified, stable, and on track for your child’s future milestones like education or major life events.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
