New Delhi: Financial planning is a must in today’s time for a better future for children. Yes, it is true that the investment capacity of all varies. You would like to tell you that if your means of income is limited, keep in mind that investments are there where the money is safe and your investment is better returns without risk.
For this, some parents are looking for good investment options. If you are also involved in them, here we are going to tell you about some of the great options. Read it, and you don’t even have to look for your children so that they don’t have to face any kind of harassment in the future. We should invest for a long time for planning the future. Let’s say that mutual funds are the best option for investing for a long time.
Child mutual funds are also present in the market
It is also a fact that the expenses start as soon as the child is born, but when it is 2-3 years old, people need money in a systematic manner for the child’s education and other needs. The main thing is that these needs increase over time, which the parents of the child start saving for him from the beginning. Many people run PPF accounts, some of their names are also fixed deposits. Very few people know that you can also invest in mutual funds in the name of your child. There are some mutual funds in the market whose child plans are also available. They have received impressive returns in the last 10 or 15 years. Tell you that when you invest in the name of your child, you do not have a joint account, but the child’s parents or legal guardians are regent. The detail of the pan card of the parents or guardian is given while filling the form. When the child is adult, all transactions are stopped from the status of the account from minor to adult.
Also Read: These 5 risks are associated with FD, better to know first
Jani A Best Child Mutual Funds
For your children you can invest in large, mid and multicap categories. ICICI Pru, Nifty Index Fund, DSP MidCap Fund, SBI Focussed Equity Fund or SBI Magnum Multicap Fund can prove to be a good fund for children. You can earn a good income by investing in these funds. From an example, suppose you invest Rs 1 lakh in SBI Small Cap Fund for 7 years, you can earn up to Rs 3.59 lakh on maturity.
Gold Saving
If you want, you can invest in gold for a better future for the child. But do not do it through physical gold. The best option would be gold ETFs. Because there is no locker or other storage fee of any kind. Not only that, you can also invest in electronic form. Doing so does not bother about theft. You can invest in small quantities every month. Thus gradually a large fund can accumulate. Gold gives much better returns than other asset classes in the long term. So, generally, gold can make good profits over a period of 10-15 years. One disadvantage of this investment is that you have to pay capital gains tax while selling which is mandatory.
