For parents, children are the world. They can do anything to give the best to them and when it comes to their education, saving becomes the top priority. The rapid rise in education costs is well known. As per Assocham, the cost of education has risen over 150 per cent in the last 10 years. According to Ankit Choradia, research analyst, Karvy Stock Broking, this trend is expected to continue, which makes it even more important to consider your child’s future as ‘invest on priority’.
Every parent wants his/her child to get the best possible education without any financial hurdle. For this, it becomes significant for parents to invest in best options to meet their educational expenses and secure their future.
Want to know more How to sure child future? We at Moneymindz.com will make it easy for you. Just give us a missed call on 022-62116588 to explore our India’s best Free Advisory Service.
MONEYMINDZ DO NOT SELL ANY FINANCIAL PRODUCTS, WE ONLY PROVIDE UNBIASED, FREE, ON PHONE FINANCIAL ASSISTANCE.
If you are looking for some investment options for your child’s future than this article is for you.
Invest in mutual funds through SIP
If you want to create good wealth for your child education or marriage in the future, one of the best ways is investing in some of the best performing mutual funds. You can consider investing in large cap funds and balanced funds. If you still believe that mutual funds are high risk even in the long run, try investing in balanced mutual funds. These are low risk funds, comparing to others. Do you know that Rs 1,000 per month invested through SIP in top performing mutual funds @ 13% annualized returns can fetch you to Rs 2.5 Lakhs in 10 years or Rs 5.5 Lakhs in 15 years time frame. This is the power of SIP in mutual funds.
Investing in gold jewellery has been a traditional way of investment for people around the globe especially Indians.Other than gold jewellery,one can invest in gold in various other ways like Gold ETFs,Gold Mutual funds,Gold Deposit Scheme etc. Gold prices are rising high since past few years but still it hasn’t lost its lustre.People love investing their money in gold and it yields very good returns.
Also,gold has been a popular investment option since ages and it has often proved to be handy at various times.
No matter in what form,Gold is certainly a value addition to your Financial portfolio.It is just that you have to time the market and buy some gold when prices are low.
Long term bonds:
What is a Bond? In simple terms, A Bond is an instrument to borrow money.
Who needs to borrow money and Why? The Government and companies require money from time to time for various projects or their expansion.
So,you get your money invested and the borrower will pay you a fixed rate of interest based on the term of the bond.If you invest in bonds,you will be considered as a lender unlike equity where you have an equity stake in the company.Bonds are normally issued for a definite period,they shall be redeemed once the period is over.
Investing in long term bonds is also a good alternative for earning decent returns on your investments.
National Savings Certificates, popularly known as NSC, is an Indian Government Savings Bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of Indian Postal Service (India Post).
This is one of the best proven methods for child education plan. One of my friends has told me this plan He started investing in NSC certificates (IX issue, maturity at 10 years) every year for Rs 1 Lakh for tax purpose (80C) for 10 years. His expectation is that from family year onwards, he should be free from spending money for child education. He would get Rs 2.34 Lakhs per annum from year onwards for 10 years.
What is National Savings Certificates?
The National Savings Certificate (NSC) is a popular and safe small-savings instrument that combines tax savings with guaranteed returns. This scheme is backed by the government and is available at post offices. The distribution reach of India Post has added to the popularity of this scheme and it is much sought after across all investing classes.
The NSC is not inflation protected. This means whenever inflation is above the current guaranteed interest rate, the deposit earns no real returns. However, when the inflation rate is below the guaranteed interest rate, it does manage a positive real rate of return.
No comments:
Post a Comment