Best Monthly Investment Plans
Published On Aug 09, 2021 2:00 PM By InsuranceDekho
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It's one of the most important responsibilities of a parent to be able to provide a financially secured future for their child. This can be done in many ways. Investing in their future gives them financial freedom and self-dependence. It helps them to choose their goals wisely and opens a vast horizon for them to choose from when it comes to higher education options.
They can choose to study abroad or study locally and invest in themselves. They can also choose to save for their marriage and future expenditures. To effectively invest in a child’s future, the parent or a guardian must keep in mind all the aspects and compare them to find a suitable option before investing in it. This way it is ensured that the child’s financial future is secure.
Monthly Investment Options
Some monthly investment options help you effectively save and grow your money for your child. A few such options are -
Public Provident Funds (PPFs)
In our country, the public saving fund is a savings and tax-saving instrument, which was introduced by the National savings institute of the ministry of finance. By offering an investment with reasonable returns it is used to mobilize small savings combined with income tax benefits. The scheme has a central government. NRIs are not allowed to open new PPF accounts, as per the Indian Ministry of finance. Anyhow, they are allowed to continue their existing PPF accounts up to its 15 years maturity period.
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Another great way to save and grow money for their future is to have liquid assets. The best way to have liquid assets is to invest in gold. This investment can be done virtually also. You can also buy the gold ETFs issued regularly by the government. These bonds remain virtual making the risk factor negligible. The risk factor is negligible as the gold can not be stolen physically. This gold can act as a liquid asset meaning that you can convert it into cash anytime you require. Buying small amounts of gold regularly over a few months and pooling it all, in the end, can give you a large amount of gold that can be used as a liquid asset. There is only one drawback to this kind of investment. You will have to pay taxes while selling the gold.
Sukanya Samriddhi Yojana
This plan was specifically tailored toward saving and growing money for a girl child. It aims to ensure the safety of a girl child. This plan can be initiated at any age of the girl child from zero to 10 years.
Under section 80C of the Income Tax Act, 1961, the Sukanya Samriddhi Yojana also has the ability to avail of tax deductions. The interest rate at present is 8.5%. This might change at any time. It is a safe way to invest in a girl child to conserve her future and fulfill the long and short-term goals she wants to fulfill.
Also Read:- Types of Child Insurance Plans
There are many safe ways to invest monthly in a child. These ways can help secure the future of your child financially. They help the child to attain financial stability even after the parent or the guardian passes away, unfortunately.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.