Investment Planning for child's future !
Children's Future Planning acquires added importance because children's education and wedding are high priority life goals, which cannot be postponed nor can there be a compromise on the amount.
Children and their well-being often rank as the highest "priorities" for parents and words like "only the best for my child" are rather common. However just having your heart in the right place isn't sufficient. Instead what you need is a practical approach to ensure that you work towards providing your child with a financially secure future. And that just might be the best present you will ever gift your child!
For children of different age group the path to child planning can be varied:
Investment horizon: 12yrs to 18 yrs
If you start investing at this stage, you allow your savings the maximum time to build up assets for your child’s education. With time on your side, you can take higher risk and go for equity funds. However, if you choose to invest on a regular basis, try and increase the amount every year.
Investment horizon: 6yrs to 13 yrs
While a part of the portfolio may still focus on aggressive investment options like equity funds, you will do well to include balanced funds also to reduce risk. The attempt should be move money to lesser volatile investment options, as the child grows older.
Investment horizon: 2yrs to 5 yrs
At this point of time, it would be advisable to invest in funds that are least volatile and overall the focus should be on preserving capital. The liquidity should be an important point whiling working out the strategy. While the open-ended mutual funds will ensure that the money is available to you as and when you require it, the key is to make the money grow at a reasonable rate.
As mentioned earlier, for those who wish to take the equity fund route and invest on a regular basis, a Systematic Investment Plan (SIP) is the best. It is a proven fact that steady plans both in terms of savings and investments help pursue financial goals.
Mutual funds provide you lot of options to build up a regular investment plan to realize any dream that you may have for your child. The key, however, is to take help of an advisor to select the right options and monitor them to ensure that you remain on track. With Godmind you can be rest assured that your child gets the best education and secure future, which is truly your value for the money invested.
