What is the best way to get returns every year?

I have cash now which I kept aside for my child's education. He is getting into PP1 now. I want to invest the cash in Mutual Funds so that I can take some money year every year which would take care of his fees every year. Please sugges me the best possible way to do it.

Should I go for child insurance (or) mutual funds?

I have a 1 month old daughter. I want to save regularly for my daughter's education. I was wondering if I should go for a child insurance plan by any of the insurance companies (or) should I invest in any of the children mutual funds? Is there any other better way to invest?