Investment Options That Can Help You Build A Corpus For Your Child
Published On Dec 30, 2021 10:00 AM By InsuranceDekho
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Child Plans are investment vehicles that children can access in the event of a financial emergency. You are securing your children for the rest of their lives by making arrangements for them now, from pricey education through independence. These investments will lay a strong basis for your child's self-assurance. You will be able to contribute more to a child's good future if you start saving sooner. Your children will be better protected during bad times if you save and invest more. Depending on your circumstances, you have a variety of investment alternatives to help your child establish a more secure future.
Variety of Options For Securing Your Child's Future
Some of the several sorts of investment possibilities from which you can select to invest your money are as follows:
1. SIPs or mutual funds
SIPs (systematic investment plans), sometimes known as mutual funds, are among the greatest long-term investment solutions since they allow you to contribute a set amount at regular intervals. Lump-sum payments can be replaced with investments as little as Rs. 500. Systematic Investment Plans (SIPs) are what mutual funds do. You can invest in mutual funds using one of two methods: systematic investment plans or lump sums. In most cases, the benefits of the investment surpass the expenditures.
2. Policies on Endowments
Endowment plans are life insurance policies that pay a lump sum when the policy matures or when the policyholder passes away. Endowment plans combine life insurance with a low-risk tolerance. These plans provide a tax advantage, a maturity bonus, and life insurance coverage. Endowment plans are meant to cover expenses like children's education, marriage, and property ownership.
3. ULIP ( Unit Linked Investment Plan)
The most cost-effective way to invest is through a ULIP, which combines insurance with investment. ULIPs allow investors to invest in a variety of funds, including equities, hybrid, and debt funds, among others. Long-term investment policyholders should consider ULIPs as a viable investment choice.
4. Fixed Deposit
A Fixed Deposit offers a better rate of return on capital than a standard savings bank account. Fixed Deposits are available at almost every public and private bank. It is simple to obtain a Fixed Deposit option. Fixed deposit rates are presently ranging from 5.75 percent to 6.75 percent.
5. Money-Back Plans
Money-Back Plans pay you a certain amount of money at regular times. Money-Back Plans combine the advantages of death, maturity, and survival rewards into a single plan. It also provides you with tax advantages based on current tax laws, as well as additional bonuses based on the company's performance over the policy period. These are standard, unconnected programs that are meant to meet your child's educational requirements.
Planning is a technique that may assist you in overcoming any difficulties. You will be able to save more money for your child's future if you start saving early. Long-term investing choices such as Money-Back Plans, ULIPs, Mutual Funds, Fixed Deposits, and Endowment Policies can help you safeguard your child's future and accomplish your financial goals. Child Plans are designed specifically for children in order to help them achieve their financial future demands. Both insurance and investment alternatives are available for children's plans. These programs allow young people to build up an investment portfolio that will help them reach crucial life milestones in the future.
Also read - Key Features Of A Child Plan You Must Know About
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.