In the current view of education and living of the rising cost, all the parents had needed to save early for their children to secure the financial future.
It is not the only purpose to save money in a particular bank account.
The parents must choose an appropriate investment to choose for securing the financial future for their child.
It is constantly helpful for the parents to invest as much as possible to give their investment when time pass accumulate the requisite corpus.
The main problem is where to invest to meet up the financial needs?
Some options available in the market;
1) Equity Mutual Funds: The cost of education had been rising sky-high on an average of over 10% each yr. This investment is relevant for those who are aggressive as they are mainly investing in stocks.
But the main part is to invest in such funds are quite in advanced as in the course factors plays a key to help the satisfactory returns needed for funding the education of children.
Through systematic investments (SIPs) help to get benefit from the small amounts regularly in these funds.
2) Debt Funds: This is the investment in which you can invest mainly in fixed income securities such as treasury bills and government securities.
3) Public Provident Fund: PPF is a fitting investment choice for conservative investors. It had been to force to an investor stay invested for the long term on which is 15 yrs lock-in period.
4) Corporate Bonds: One of the most aware that credit risk is associated with the bonds. Each corporate bond is a debt obligation.
Who buys corporate bonds is an investor who is lending the money to the company issuing the bonds. If investors are investing in a corporate bond of 18 lakhs, approximately Rs 65.56 lakhs a corpus could be accumulating in 15 yrs.
5) Solution-oriented mutual fund scheme: The scheme is investing in a mix of quality and fixed income securities. It has a lock-in period of 5years. And it is acquainted with accumulating a corpus for Their children’s educations.
6) Gold Mutual Fund: This is the best choice to invest for the investors. Mostly, those who are concerned in the long run about the inflation rates. One of the investors says Rs 10,000 each month for 15 years and the return will be approximately 7% return on Rs 18 lakhs on total investments.
For the expert views, many more options are available in the market on which the parents could invest for their children’s needs for financial future. Such as; Sovereign Gold Bond(SGB), in the government‘s Sukanya Samruddhi Yojana, National Savings Certificate.