If you start investing as soon as your child is born, you can add a huge amount in 15 years and give better education to your child.
As soon as the child is born, we start worrying about his future. A huge amount is spent for the higher education of children. But if you start investing as soon as your child is born, you can add a huge amount in 15 years and give better education to your child. Know here two such investment options where if you invest even Rs 5000 every month, you will get the benefit of compounding interest and within a few years you will accumulate lakhs of rupees.
PPF
Public Provident Fund i.e. PPF is a scheme in which any Indian can easily invest. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in PPF. This is a scheme in which you get a government guarantee, that is, whatever amount you are investing, you will get guaranteed returns on it. At present, 7.1 percent interest is being given on PPF.
In such a situation, if you invest even Rs 5,000 per month, then Rs 60,000 will be invested in a year. PPF is a 15 year scheme. In such a situation, there will be a total investment of Rs 9 lakh in 15 years. At the rate of 7.1 percent, you will get Rs 7,27,284 only as interest on PPF. In this way, on maturity, you will get a total of Rs 16,27,284 including the amount of Rs 9 lakh invested and interest. You can use this amount for your child’s future.
SIP
If you can take some risk in this matter, then you can invest in mutual funds through SIP. Due to being market linked, there is no guarantee of returns in it, but experts believe that in the long run, an average return of 12 percent can be obtained through SIP. Even if you choose SIP option, you have to invest only Rs 5,000 every month. But if we calculate on an average basis of 12 per cent, then in 15 years there will be an investment of Rs 9 lakh and the interest on it will be Rs 16,22,880 and after 15 years, including the amount invested and the interest, you will get a total of Rs 25,22,880, which is This can be very useful for your child’s future.
