Check Top Investment Plans for Newborns in 2024

Every parent in this world wants to provide their child with the best life which will be filled with love, care, affection and opportunities, and this is every parent's greatest wish. However, we are living in the generation where expenses for education and overall livelihood are increasing so rapidly that securing the future of our children requires not just love but also a very well planned investment.

Investment plays a great role in fulfilling your financial dreams, and when we talk about our children’s future, then the choices that you are going to make today will be affecting their future either in a good way or a bad way.

So, Let us look at the best investment opportunities for making sure our new born babies financial future is secure in 2024.

Why is Making Investment Plans For The New Born Babies Important?

There are many reasons as to why investing for your child’s future is important:

• Financial Security: Investing in your child’s future beforehand will help you in creating your new born baby’s future secure and financially stable, making sure that they have enough resources they need. 
• Academic Expenses: There are many investment plans for children which are specially made for the purpose of covering the expenses of education which makes it easier for the parents to fund their child’s academic expenses.
• Savings: Prolonged savings can actually encourage you to invest in a child savings plan which will be increasing over time and aiding in providing for your child when they need it the most.
• Management of Risk: Investing in new born baby schemes usually provides you insurance and security in case something happens to the parents. This makes sure that the child's future is secured.
• Benefits of Taxes: Investing in a new born baby’s scheme also offers you tax benefits while you are securing your child's future too.
• Personalised Scheme: Whenever you are investing for your child’s future, you can also customise the plan according to your needs or your child’s needs whether it can be for academic plan, wedding plan or any other events in their life.
• Protection from Monetary Inflation: The best investment plans that you have taken for your little baby can help you tackle the effects of inflation, making sure that the money you have saved now, it can retain its value in the coming future.
•  Peaceful Mind: You can have peace of mind knowing that you have invested in your new born baby’s future. 

7 Best Plans to Invest For Your Newborn Baby in 2024

Some of the top plans of investment for your newborn babies are as follows:

1. Investment in Direct Stock

Investment in direct stocks means buying stocks or shares of the companies, It provides with the possibility of gaining high returns over a long period of time. However, it is also very important to be aware about the fact that these high returns also come with a significant amount of risk. Additionally, the stock market is very unpredictable and the investment value also varies according to the market.

You are supposed to have a good knowledge about investing in the stock market, if you are thinking of investing in direct stocks. Also, you should think of various portfolios so that you can manage your risks easily.

2. Investing in Provident Fund (PF)

The Provident Fund (PF) is a scheme which helps you in saving money and is backed-up by our Government. It provides us a fixed 7.1% rate of interest per annum which is the current percentage going on. In provident funds, the holding period is 15 years, but if you wish to extend the holding period then you can extend it to 5 more years. If you are looking to invest for your newborn baby, then this is the safest and most trustworthy option for long term basis saving method which also offers advantages like tax benefits and secure returns.

3. Investment in Gold

One more plan which is great if you are planning to invest for your newborn baby is Gold. Gold has always been a good source of investment which is long term and secure, but we also know that buying physical gold comes with a lot of risks and further costs. Therefore, you should consider buying Gold Exchange Traded Funds (ETFs) or Sovereign Gold Bonds (SGBs) which are electronic gold variances. These gold variants allow us to invest in gold without the complications and risks of buying and storing physical gold.

4. Investing in Mutual Funds

Investing in Mutual funds is a very good choice for Indians particularly for those who are looking for long-term investment goals like for the education of their children. Mutual funds basically consolidate funds from various investors to invest in portfolios of stocks, bonds or other securities. Most attractive thing about a mutual fund is that you can also start investing in mutual funds with the minimum amount of 1000 rupees per month which makes it an easy method of investment for many people.

5. Investing in Life Insurance of a Child

Investment and Insurance are combined together when we are planning about child life insurance. In case of the unfortunate demise of your parents, these plans make sure that your child’s financial needs are fulfilled. These life insurance plans for your child can give you peace of mind knowing the fact that even if you are not around, your child’s future is secure.

6. Investment in National Savings Certificate (NSC)

Another method of saving which is tried and tested is the National Savings Certificate which will secure your child’s future in terms of education. They have a fixed period of investment which is for 5 years and after it reaches maturity period, you can reinvest. It is an attractive investment option for a long term savings method as its current rate of interest is 7.7%. This method of investment is backed-up by the government of India which makes it a low-risk opportunity for investment.

Also, you can start your NCSC account with a minimum amount of 1000 rupees and after that you can add multiples of 100 rupees whenever. There are no limits to this investment plan for your child, you can invest as much as you want.

7. Investment in Bank Fixed Deposit

This method of investment for your child is a very secure and trustworthy method among Indian families. This method of investment is renowned for its security and guarantee of returns. Some of the banks offer Fds for 5 years which makes it an excellent option for the long term. You can again invest the principal amount and continue growing your savings after it reaches its maturity period. The best and secure way to gather wealth over time is Bank FDs.

Conclusion

It is very essential to start making wiser investment choices early on especially when you are trying to secure the future of your new born baby. It is very important to make a balance between the returns you are getting from your investment and the risks you have to take in the same investment as you have many options of investment nowadays. Each investment option has its own advantages and disadvantages and you have to determine which investment option is giving good returns according to your financial goals. Hence, Making investment in different plans will help you reduce your risks and give you good returns.

If you need details or any kind of assistance in choosing the right investment plan for your baby or yourself, you can connect with an InsuranceDekho advisor on call +91-7551196989 or email us at support@insurancedekho.com

Frequently Asked Questions (FAQs)

Ques 1. What is the best investment for a newborn baby?

Ans. The best investment option for a new born baby is a broad portfolio of investing in mutual funds or an investment plan which is solely dedicated to the child's needs and future wants.

Ques 2. How do I start a newborn fund?

Ans. Firstly, you have to start by opening a savings or an investment account which is dedicated only for your new born baby. Consulting a financial advisor would be a good option in this case. You can connect with our team for assistance on call +91-7551196989

Ques 3. Can I buy shares for my child?

Ans. Yes, of course you can buy shares for your child. Until the child reaches the age of maturity, you (parent) will have to set up a custodial account in their child's name and manage the share they have bought till then.