Everyone is trying to invest in a positive environment for the child’s future. The real goal is to achieve the highest good in the future. The cost of education in India is rising rapidly and it is becoming increasingly difficult for middle-aged parents to meet the high cost of higher education and other costs. Therefore, it is important for parents to start investing in small amounts as early as possible.
Many parents invest in land or buy golds to meet their future needs, but it is important to ensure that the asset is easily monitored for its intended purpose. Your portfolio should have sufficient liquid resources. Before deciding where to invest in your child’s education and how to maximize your investment.
One can invest in equity funds. There is a certain risk that equity funds depend on the stock market. But investing in equity funds has the potential to yield good returns. One can invest in Sukanya Samriddhi Yojana and Equity Funds according to individual needs.
A child education plan (including investment insurance), which ensures that the child receives a certain amount at maturity to cover the child’s education or child marriage. These insurance plans are maturing and the final payment is made when the child turns 18.
A small portion of the payment is made to provide system life insurance, and the rest is invested in equity or debt instruments. Helping to save a child in need of higher education. In case of educational activities of a child, life insurance is provided to the parents. One investment option that can be ideal for long-term financial goals such as a child’s education is an equity fund. In addition, investors have the option to periodically review their financial performance and make necessary changes without penalty.
Investing in equity mutual funds through a Strategic Investment Plan (SIP) can be another effective way to plan for children’s education. By using SIP, parents can earn a small amount over time to raise enough funds for their child’s higher education. Also, over an investment tenure of 7 years or more, equity mutual funds may bring in benefits offset by inflation rather than the education activities of the children. In addition, investors have the option to periodically review their financial performance and make necessary changes without penalty. To save money for your child’s higher education, you can use a relatively safe financial vehicle, such as PPF or NSC.
Before deciding where to invest for your child’s education and how the investment will increase, here are some Best Child Education Plan in India 2022 that one should always keep an eye on. For those who are not willing to take any risks, it is best to invest 100% in PPF and Sukanya Samridhi Yojana without investing elsewhere.
It is a long term investment option that offers a fixed rate of interest and guaranteed return on investment. Currently, PPF is paying an interest rate of 7.1 per cent per annum and is subject to quarterly updates at the discretion of the government.. If you deposit 1 lakh rupees in PPF every year, then you will get around 28 lakh rupees in 15 years. It is a safe investment option as it is a government project. The lock-in period in this scheme is 15 years. A minimum deposit of Rs 500 and a maximum of Rs 1.5 lakh is allowed in a PPF account in a financial year.
The best project for girls is Sukanya Samriddhi Yojana. The scheme currently offers an average interest rate of 7.6%. This is a long term plan. For Sukanya Samriddhi Yojana as well as future benefits, This scheme was started by the government in 2014 for girls below the age of 10 years. The minimum deposit amount in this scheme is Rs 1000 and the maximum amount is Rs 1.5 lakh per annum. Presently this scheme pays interest at the rate of 7.6% per annum. In this scheme, you have to deposit money for 15 years, when the maturity period of the account becomes 21 years, that is, when the daughter turns 21, money can be withdrawn from this account.
For those who like to risk it, it is best to invest an equity loan of 75 to 100 percent. Children’s Gift Fund is a mutual fund scheme that provides financial benefits for your children’s wedding expenses, future school fees, etc. This product is suitable for investors who wish to invest in equity and equity related instruments as well as debt and investments and money market material. You need to start investing by deciding how many days and how many goals you want to set for your child’s age. The monthly SIP instalment depends on all these factors.
Its market capitalization is Rs 607.91 crore. Marked compared to Nifty 50 Hybrid Composite Debt 65:35 Index. The fund was launched on December 8, 2015. The asset allocation of this fund includes approximately 73.08% of shares, 26.51% of debt and 0.41% cash and cash equivalents. The top 10 shares make up about 44.28% of assets, the top 3 sectors make up about 44.9% of assets. The fund follows an investment pattern focused on growth and investment in the market – about 77.82% in large and medium-sized companies, 13.82% in medium-sized companies and 8.35% in small-cap companies.
|Fund name||1 year||5 year||YTD|
|Axis Childrens Gift Fund||37.82%||14.54%||11.91%|
HDFC Children’s Gift is an open-ended aggressive hybrid fund that invests 65-80 per cent of your earnings in equity shares and above in bonds. The fund was launched on 02 March 2001. This is a comparison mark of Nifty 50 Hybrid Composite dated 65:35. The fund’s assets consist of approximately 66.67% shares, 16.68% debt and 16.65% cash and other cash equivalents. While the top 10 equity stocks account for about 36.48 per cent of the assets, the top 3 sectors account for about 38.76% of the assets. The fund follows a growth-focused investment approach and invests in all markets – around 63.96% in large and medium-sized companies, 11.8% in medium and 24.24% in small companies.
|Fund name||1 year||5 year||YTD|
|HDFC Childrens Gift||48.06%||16.02%||19.03%|
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