Karisma is the eldest daughter of actors Randhir and Babita. She was nicknamed Lolo after Hollywood actress Gina Lollobrigida. Karisma studied at the Cathedral and John Connon School in Mumbai and later in Sophia College for a few months.
Karisma is known to be very close to her father and actor Randhir Kapoor. Even after Randhir and Babita's separation Karisma, who stayed with her mother and younger sister Kareena, reportedly took permission from her father to start her career in Bollywood.
Karisma is very close her mother too. Karisma's mother Babita had always had a lot of influence over daughter Karisma's life.