Children are everything to their parents and they work hard to give them the best. Thinking about their education and financially securing them can lead to some stress. Therefore, timely investments should be the top priority. Higher education costs and rising living standards make it important for the parents to make investments. There are a range of investment options available to secure children’s future. However, opting the best child investment scheme may not be easy. Instead of looking for the best scheme, parents should diversify across a few investment options.
Parents want their children to have a best future. So, they can go to extreme lengths to make sure their children are safe and successful. However, with higher costs, this investment amount will increase in the coming future. This will make it essential for parents to choose long-term investment options in India for offering quality education.
Here are some great child investments saving options that investors can choose according to their risk appetite:
Stock market investments are risky, but they deliver strong returns and can beat all other investment options easily. Investors can decide to invest in stocks directly or they can consider doing systematic investment plan in mutual funds to create long-term investment plan for their child’s growth. SIP Investment is more like depositing a fixed amount in savings account for the longer time period until it reaches the specific target. Over long term, stocks and investments in mutual funds can help generate strong returns over a more extended period. These investments can help beat inflation too.
Stocks & Mutual Funds
Stock market investments are risky, but they deliver strong returns and can beat all other investment options easily. Investors can decide to invest in stocks directly or they can consider doing systematic investment plan in mutual funds to create long-term investment plan for their child’s growth. SIP Investment is more like depositing a fixed amount in savings account for the longer time period until it reaches the specific target. Over long term, stocks and investments in mutual funds can help generate strong returns over a more extended period. These investments can help beat inflation too.
Investments in Gold
Gold is always considered as a perfect hedge against equity and during volatile and challenging times. Parents should make investments in gold in the form of ETF or E-Gold or gold mutual funds. Some people advice to avoid investments in physical gold to minimise the risks associated with physical gold. By buying the gold electronically, there is no requirement of renting lockers. Gold ETFs track the price of physical gold only. When gold prices increase, investors can decide to sell the units of gold ETFs and use that money for purchasing physical gold.
Unit Linked Insurance Plan (ULIP)
These are plans which are relevant for individuals who look for insurance protection and investment returns at the same time. ULIPs have the potential to deliver better returns than other traditional investments. Since some portion of the premium gets invested in the funds operating in the capital market, the odds of generating healthy returns are more.
Public Provident Fund (PPF)
This investment plan is similar to the Employee Provident Fund (EPF) which is being offered to the salaried class. However, PPF is open to general public and this can be opened by anyone. PPF investments involve a lock-in of 15 years and the rate of interest is higher than savings or FD account. Apart from savings, PPF investment can provide tax advantage which one can claim under section 80 C at the time of ITR filing. Another advantage of this plan is that the PPF account can be retained with or without making additional contributions. The corpus which has been already invested will continue to earn interest until the closure of the account.
Apart from these investment options, there are other avenues where investors can invest to secure their child’s future.
VSRK Capital can provide a blend of these investment options according to your risk appetite. Contact us now!!
