Investing for your child


To be a parent is a magical feeling. However, parenthood also involves many responsibilities. Apart from the child’s present, you also have to think about his or her future. Your child will need your support with education and many other wants for which you will need to plan today. Investing for your child’s future is an important thing.

Things to remember before investing

Planning the future of your child requires calculated thoughts. You have to understand few things before you invest. What makes things interesting is the time that you have in your hand. When you are investing for your child’s future, you can invest for a minimum of 18 years. That allows you to invest in rather risky options because you have the support of time. The future will be undoubtedly costly, especially education, which will be exorbitant. You need proper planning for you to have sufficient returns in the end. Don’t just opt for what sounds attractive, choose the options methodically. Mentioned below are some investment options for your child’s future. 

PPF

Public Provident Fund (PPF) is one of the safest investment options as it offers you an assured return. This investment option is backed by the government and that is what makes it safe. Investing Rs. 60,000 per year will get you enough returns after 20 years. 

Equity mutual funds

Equity investments are risky but you have enough time to understand and experiment with them. Equity mutual funds, which invest in equity options, are your best choices. These mutual funds can give the maximum returns as equity works great for long term investments. Choose a Systematic Investment Plan which will require you to invest a pre-decided amount every month.

Real estate

In the current market situation, real estate investments can be your best bet. Property values are rising and will only continue to do so. If you buy one now, you will get attractive returns after 20 years. All you need is a good amount of money to invest.

Insurance

Getting insurance policies is very important if you want your child’s future to be safe and secure. The health and life insurance plans are the important ones. You must invest in a good child plan for better safety, a lot of them are available in the market today.



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