Parenthood is one of the most beautiful pleasures in the world. It’s not only adding a new dimension to your life, but also makes you more responsible. The birth of a child brings to you a greater sense of responsibility on your shoulder. Earlier, one can take any decision without giving much thought, but once you become a parent, one needs to look out for the best possibilities before coming to any conclusion. The upbringing of the child requires a lot of planning as well as proper strategies for a safe and secure future. For any parent, children hold the prime responsibility and providing them with the best resource is their sole job.
Protecting and securing their child’s future is one of the top priorities of every parent. Every parent makes certain sacrifices on their personal level to meet their children’s demands. Apart from that, they need to plan their child’s future in advance. Financial security plays a key role in securing a better future for them. With the growing cost of living, it may become hard to deal with the expenses that come with educating them or providing a better lifestyle. Therefore, saving becomes a necessary thing for every parent. Investing in the right instrument and saving for your child’s future is crucial and should be done earlier in life. There is various financial instrument available in the market for securing your child’s future, such as Fixed deposit, PPF, Gold or Government scheme. But investment in a mutual fund is the best options for every kind of parents. It allows you to become a sensible and responsible investor, who can benefit for the market inefficiency.
SIP (Systematic Investment Plan) is the best way for parents to build a corpus of wealth over time. It is one of the best bets for the long-term investment plan. It provides two key features to the investor, rupee cost averaging and Compounding effect. What is really striking about the SIP, it allows even an investor to invest with a minimum amount of Rs 500. More so, SEBI has introduced a special category of fund especially for securing the future of children through Children Funds. These child plans include open ended mutual fund schemes, which has a lock in period of 5 years. Let’s look at some of the top child future plan, according to Paytm:
- ICICI Prudential Child Care Fund (G)
- SBI Magnum Child Benefit Fund (G)
- HDFC Child Gift Plan
- Axis Child Gift Plan
- LIC MF Children’s Gift Plan
Apart from that, an investor can also invest in various schemes to achieve the long-term goals:
PPF is also one of the best options to invest for your child’s future in the long term. It is one of the most effective tax saver schemes. It can be open in either one name or in the name of minor.
It’s a government scheme which mainly are for the girl child and their financial needs such as education or marriage. An SSY account can be open for the girl who are less than 10 years of age. This allows a maximum of two girls from a family.
It’s mainly an equity mutual fund with equities as an underlying asset fund that have potential to deliver high inflation adjusted returns.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.