It is common for grandparents to endow gifts on their grandchildren from time to time. It may be on special occasions or a gesture of love towards them without any occasion. Often the gift is a solid one like an expensive toy. These gifts nearly provide instant happiness to your grandchild. But these materials do not give happiness to the child for his/her higher education. But gifting an investment would provide amply for his/her higher education.
The necessity to build a corpus dedicated for your grandchildren’s education
Each day passes and the world is increasingly becoming competitive for quality education. But this education is not enough. For facing the ever-growing challenges posed by job environments people are increasingly following the line of premium professional courses. Besides, any today’s situation the cost of childcare especially that of education, is surging. The rate of this increase is faster than the average level of inflation. Inflation will take these numbers higher year after year. Proper awareness of the same and the cost of education should not come as a surprise. Finances should not get in the way of their child’s dream and it calls for better preparedness through regular savings with a goal in mind. Investing in your grandchildren’s future enables you to manage your estate more efficiently. As you get nearer to your old age, sufficient enough estate would be the best deal for the next generation to inherit your wealth.
Children’s Funds – A Gift that Grows Along with the Child
Children’s mutual fund a category of mutual fund schemes designed to build a corpus of a children’s perspective needs like education, marriage, general welfare, etc. It is an unparalleled offering in this category of mutual funds. It permits a grandparent to gift units of the fund to a child under 18 years of age. Alongside investing the fund, a grandparent can be the donor, the parent is the stated guardian. Then the units could be retained safely in the name of the child. When you can make a one-time gift of investing in the fund, a sustainable way to build a sizeable corpus for your grandchildren’s future is to opt for SIP. By using SIP, you can gift your grandchildren units of the fund periodically.