What are the different types of investments you can make for your child's future?
Published On Mar 19, 2022
What the parents desire is the best future for their children. As a result, they are willing to go to any length to ensure their children's safety and success. With growing expenses, however, this number will only rise in the future, making it critical for parents to consider long-term investment choices in India for giving great education to their children. Starting early is the best time to begin saving for your children so that you may develop a substantial corpus for their college education and marriage. There are several long-term savings solutions in which you may put your money so that it is secure and appreciates exponentially over time.
Types of Investment Options That Will Secure Your Child’s Future
When it comes to investing your money, the following are some of the several types of investment options accessible to you:
Mutual Funds or SIPs
SIPs (systematic investment plans) or mutual funds are excellent long-term investment vehicles because they enable you to invest a set amount at regular intervals. You can invest as low as Rs. 500 instead of making lump sum instalments. Systematic Investing Plans are the investment technique used by mutual funds. When it comes to Mutual Funds, you may choose between two investing options: Systematic Investment Plans and Lump Sum. In most circumstances, the advantages outweigh the costs of the investment.
Endowment plans are life insurance policies that provide a lump sum payment when the policy expires or the policyholder dies. Endowment plans offer the benefits of life insurance as well as a low-risk appetite. These programmes combine a tax break, a maturity incentive, and life insurance into one package. Endowment plans are used to cover costs such as children's education, marriage, and homeownership, among other things.
ULIP (Unit Linked Investment Plan)
The ULIP, which combines both insurance and investment advantages, is the most cost-effective kind of investing. ULIPs enable clients to invest in a diverse range of funds, such as equity funds, hybrid funds, and debt funds. ULIPs are an ideal investment choice for long-term investment policyholders.
When compared to a regular savings bank account, a Fixed Deposit provides a better rate of return on capital. Almost every public and private bank offers fixed deposits. A Fixed Deposit account is straightforward to open. Currently, fixed deposit rates vary from 5.75 percent to 6.75 percent.
Money Back Plans pay you a certain amount of money back at regular intervals. Money Back Plans combine the advantages of death benefits, maturity benefits, and survivor benefits into a one, easy-to-manage plan. It also gives tax benefits in compliance with current tax legislation, as well as extra bonuses based on the company's success during the life of the policy.
To summarise, there are numerous long-term investment possibilities available to save for your children; conduct your study to discover the ideal combination of investment return and safety, since this is your hard-earned money that must be put to work. The planning procedure may help you overcome any issues. The sooner you begin preparing, the more money you will be able to save for your child's bright future. Long-term investing options include Money Back Plans, Unit Linked Insurance Plans, Mutual Funds, Fixed Deposits, and Endowment Policies, which you may employ to secure your child's future and accomplish your financial goals.
Also read- Best Investment Plans In India
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.