When nothing is redeemed, one need not be worried for gift given to child.
If you invest for the kid and let money remain invested till kid becomes a major, you have no tax liability.
In equity investing, tax is applicable only after redemption. STCG if redemption is before completion of one year (Tax = 15% of gain amount).
LTCG if redeemed after 365 days. ( 1 lakh worth of GAIN is tax free. Balance GAIN is taxed at 10%).