Parents always want best for their child and want to secure their future. There are different stages of life and the requirements of a child always vary from their time of birth until the child has grown up. Nowadays there is higher inflation and to meet the goals, to provide best and secured future for your kid you have to invest wisely.
Here are 5 savings plans for your kid’s future
The child insurance plans are very helpful and it provides a good amount of financial protection to the nominee child when the policyholder or parent is no more. In this case insurance company invests on behalf of the policyholder. This is the good way to secure the child’s future in case something unexpectedly happens to parent.
Mutual funds can provide the biggest advantage over risky investments because they are managed by professionals who have great knowledge of stocks. In mutual funds, you can create a portfolio for children education or other purpose. Mutual funds are the best investment option because it provides a wide range of benefits such as tax benefits, professional management and liquidity. These includes:
Pure equity mutual funds: These are for long term investment and generate high returns.
Hybrid Funds: If you are less inclined towards the risk then you can think of hybrid funds.
Debt Mutual Funds: It is for short term investment.
Fixed Deposits or FDs
Fixed Deposits are another best way of investing in future and when you invest in FDs you receive the regular income every month or quarterly as interest. It is a very safe investment that you can make for your child. But this investment is unable to beat inflation.
Recurring Deposit or RDs
This scheme is suitable to meet the growing cost of the child’s future needs. With the help of this scheme, you invest the amount according to your desire on monthly basis and this will help you to fulfil future needs of your child.
Equity-Linked Life Insurance Bonds
This offers both savings and protection for the policy holder. When you invest in such a plan, some portion your investment amount will provides insurance cover like life insurance policy and other portion will go to invest in bonds and equity stocks and will offer you wealth creation opportunities. Also these Insurance bonds will provide lot of tax benefits.