Make your child's financial life secure | Fusion - WeRIndia

Make your child’s financial life secure

Make your child's financial life secure

Children are the future, so protecting the futures of children is one of the most important jobs for parents to do.

It is especially important to secure children’s financial futures, since a good financial state will give a child more and better opportunities for education, careers, and expenses.

Saving money for children in the present can have a massive positive impact on their future, and will help secure them a better life. There are several things that parents can do to help secure their children’s financial future, and these are some of the recommended things to do.

It is highly recommended to invest in mutual funds for children via Systematic Investment Plans (SIPs). During the last 4 years, equity mutual gains have provided approximately 15% in returns.

However, it is best to invest in equity mutual funds only if the child’s higher education begins in 5 years.

Another recommendation for saving for children’s financial future is multi cap funds. These can provide more gains than mutual funds, since the return aspect from mutual funds is usually 4 years.

Having a few multi cap funds can provide gains of around 22%, since they have provided average gains of 22% during the past 5 years.

Avoid fixed instruments such as child plans and Unit Linked Insurance Policies (ULIPs), since they have been failing to suffice in recent times.

These plans will not account for inflation, and will probably not provide the money needed for a child’s higher education. Turn to mutual funds and invest in them instead, which will accumulate more money for children’s financial plans.

Remember to wrap up the term plan, since it is best to go for a plan that meets liabilities of the family in case of an untimely death.

In fact, there are plans that pay towards investments or waive premiums in case of such needs.

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