The child-specific fund will be open for initial subscription from April 22 to June 5. In a statement issued here on Tuesday, Vivek Reddy, chief executive of the Kothari Pioneer AMC said the scheme had been designed to help people save for their children's future. Parents, grandparents and relatives could open accounts for children below 14 years with a minimum of Rs 2000 and keep investing amount as low as Rs 500 until the child turned 18, he added.

The scheme will invest a minimum 90 per cent of its corpus in high quality debt and money market instruments and is expected to generate an annual return of 13-14 per cent. Investors would have two choices under this scheme - a Gift Plan and an Education Plan, Reddy said. Under the former option, the applicant makes an irrevocable gift to the child whoon turning 18 would receive the entire corpus, with the attendant capital appreciation and re-invested dividends.

The Treasury Management Account (TMA) is a no-load, open ended income fund targeted at high networth individuals and corporates who are looking for investment avenues for their short term surpluses, Reddy said.