9 Best Child Investment Plan With High Returns 2022
(India is now the sixth nation with the highest rate of covid-related orphanhood. Children aged 10 to 17 in India were reported to have a paternal orphan rate of 49.8% and a mother orphan rate of 15.2%!)
So, searching for the best investment plan for child in India is no more luxury than a basic necessity to cope with Covid, income, uncertainity of life, and inflation.The cost of raising a child is high, but it is well worth it to give them the greatest possible upbringing, including access to quality healthcare, education, and a stable future. However, nothing is free or simple. To give kids the best, you must invest early and plan meticulously.
What is your ultimate financial objective? The schooling of your child? Your plans for retirement? What plan do you have to accomplish these objectives?
Your children have their own goals and aspirations. All you have to do is make sure they continue doing what they want, and they will begin making wonderful plans to complete certain chores in the future. Remember that achieving these ambitions consumes a sizable portion of your monthly contributions, leaving you in a tight financial situation each month. But the best investment plan for child in India can offer security and certainty in this situation for a significant number of years to come.
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Importance of child investment plan: Why do you need them?
1) Sensibility to Risk
By investing in a child plan in advance, you can shield yourself from the uncertainties of future income flows. Such arrangements protect the child’s schooling and related costs in the terrible event of your (parents’) passing or a severe loss of income.
2) It helps you in avoiding borrowing money
An education loan is the most popular option to secure funding for higher education. If you’re a new parent, you may be familiar with the headache of repaying it; you may already be doing so—or you paid it for yourself! Why therefore assume this additional responsibility?
3) Tax advantages
The best investment plan for child in India you make, and the benefits you obtain from child education plans are tax-deductible. So, in addition to saving for your child’s education and future, you have the opportunity to reinvest the money you save on taxes. The premium is deductible under section 80, along with the maturity amount.
4) Conscious saving
Investing in a kid’s plan is another option to save money each month with a set amount specifically for your child’s education. When you choose a committed investing plan, you must set aside and save a specific amount of money.
9 best investment plans for child in India—
LIC – New Children’s Money Back Plan
A special plan from LIC called the New Children’s Money Back Plan is created to meet all of the needs of growing children, including their schooling, wedding, and other expenses. Along with numerous survival and maturity rewards, this policy gives death benefits. The option to receive the survival benefit will be available to the policyholder at any time on or after the due date as long as it is within the policy’s term.
Additionally, by paying an extra premium, proposers between the ages of 18 and 55 can add the optional LIC Premium Waiver Benefit Rider to their life insurance policy. It can easily join the club of best investment plan for child in India.
Bharti AXA Life Child Advantage Plan
This typical child investment plan gives you a choice between receiving an endowment benefit or a money-back benefit when you reach maturity. The plan has a built-in option to forego the premium benefit. If you pass away, the insurer will continue to pay the premium so your kid can benefit from the coverage.
The entry age for parents is 18, while the maximum age is 55 for the Limited Pay option and 50 for the Regular Pay option. In the Regular Pay option, the maturity age is 71 years, whereas in the Limited Pay option, it is 76 years. Options for policy terms can be between 11 and 21 years. That’s why we pick it to join the club of ‘ the best investment plan for child in India.’
For many reasons, this is the greatest investment plan. It is a 15-year programme that allows you to accumulate funds for your child’s education.The current interest rate is 7.1% compounded annually where investors do not need to pay tax on their interest they received. In addition, you are eligible for a tax credit under Section 80C of the Income Tax Act of up to Rs. 1.5 lakhs. Another unique feature is PPF account may be kept with or without making any additional contributions, and the corpus will continue to earn interest until the account is closed.
SBI Life Smart Scholer
An unaffiliated unit-linked insurance plan (ULIP). If you are not present, this plan offers your double family security. An integrated premium or an integrated withdrawal indemnity ensures the continuance of your insurance, and the payment of the basic sum is covered.
The two benefits of this plan are market-related rent and insurance. The admission age is zero years, while the maximum age is seventeen years. The Income Tax Act’s Section 80C allows for a tax deduction for the Smart Scholar programme. Additionally, in the tragic case of passing away, a lump sum payment equal to the higher of the total covered or 105% of all premiums paid up until the date of death will be paid.
Canara HSBC Child Plan
This is a long-term investment option provided by Canara HSBC that enables you to help your child realise their dreams without having to worry about money. It is a complete insurance policy that pays a death benefit and funds the premium in the event of both the policyholder’s death and disability.
You have the choice to invest in any one of six funds: the Debt Plus Fund, the Growth Plus Fund, the Equity II Fund, the Liquid Fund, the Balanced Plus Fund, and the India Multi-Cap Equity Fund. If you wish to financially protect your child in the event of our untimely passing, this is an excellent plan.
Debt Mutual Fund
There are debt mutual funds that provide higher returns than bank deposits. Additionally, they are superior to bank deposits in terms of tax efficiency. But above all else, you must choose to make plans for your children’s safety. Considering a very long-term investment, consider them because they offer superior returns over the longer term.
Consider investing in debt mutual funds with a strong tilt toward AAA securities. If markets decline, this will provide you with some relief. Gilt-edged funds, which invest primarily in government securities, can also be a wise investment. Returns from debt mutual funds would generally be in line with economic interest rates, which currently range between 7.5 and 8%.
Sukanya Samriddhi Yojana Account
Are you trying to find your daughter the ideal long-term investment?
The Indian government’s investment programme would then enable you to put money aside for your girl child’s future stages, such as schooling and marriage. One can start saving with a minimum of Rs 1000 in an account that earns 7.6% interest and matures when the account holder turns 21.
Investment in Gold
When the markets have a roller coaster ride against equity, gold always serves as the ideal hedge. Parents can invest in gold in the form of gold mutual funds, ETFs, or E-Gold. To lessen the risk involved with gold storage in physical form, experts advise against investing in it.
Invest in ULIP
ULIP schemes are a great option for low-risk investors, although many people do not favour them. Any one of the ULIP programmes can provide returns ranging from 4% to 6% per year. But keep in mind that, as compared to the various child investing plans in India that are offered, ULIP programmes must be the last resort.
Apart from this, you can also think of Govt-backed Post Office Savings Schemes, National Savings Certificate, and Recurring Deposits for the best investment plan for child in India. As per your need, you can scan TATA AIA Super Achiever Plan, PNB Metlife Smart Child Plan, ICICI Pru Smart Kid’s Regular Premium, Aditya Birla Sun Life Vision Star Plan and Exide Life Wealth Maxima Plan.
Take the appropriate actions at the appropriate moment. Be the parent ready for a future filled with many unanticipated costs. Invest in a strategy that will enable you to safeguard your child’s future, whether you’re there or not.
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From this entire article, you will get the best child investment plan in India; even you can also go for Govt-made offers.
1. As soon as you can, begin investing.
2. Invest in line with the short- and long-term objectives of the child.
3. Invest in term and health insurance for your kids.
4. Look for investment programmes with partial withdrawals, appoint a nominee.
Calculate the inflation and purchasing power parity(PPP) with your financial advisor and pick up the best plan which can cope with the value.
Your primary responsibility as a parent is safeguarding your child’s future, and purchasing a child insurance policy is an excellent place to start. A child insurance plan offers you the advantages of investments and gives your child the safety net you would desire for them.
Both adults and children can open an account. However, until the child reaches the age of 18, a guardian must manage the account on behalf of any minors under the age of 18. A PPF account can be opened at any age, regardless of minimum or maximum requirements.
The finest alternative with larger returns and tax advantages if you’re looking for a strategy to safeguard your girl child’s future is SSY. On the other hand, PPF is a possibility to consider if you’re looking for an investment strategy with strong long-term returns.
Well, that depends on the goal of the investment and the time that you want to begin. For instance, if you want to start saving for your child’s school when they are young, think about investing for the long term. By doing so, you get the advantages of a long-term investing perspective, which can multiply your money’s growth.
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All the information are used for education purpose only. Investing in child education plan poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.