Best investment plan for child education in india

With the cost of education going up day by day, it has become extremely important to start saving at the earliest in order to lessen your financial burden at a later date. Funding your child’s higher education is definitely going to cost you a fortune, 10 years down the line. Hence, it is better you start investing now than regretting later. Before you begin, you must be clear with your investment objectives. Question yourself on the following to arrive at appropriate financial goals- • Risk appetite– how much risk can you afford with your investments • Investment horizon– for how long can you lock-in your funds • Investment amount– how much amount can you put in a mutual fund (whether you are planning to invest in SIPs or through lump sum amount) • Mode of investment– whether you can invest all the amount in one go (which would lead to investing in lump sum for a year) or you wish to put in a little amount at fixed intervals (through SIPs) • Target corpus– how much amount do you expect to receive at the end of your investment period (make rough estimates of how much returns do you wish to generate and then decide on the principal amount) Once you have set your investment objective and have a financial plan by your side, it is time that you explore the investment options available. You can invest in the following to gather a sufficient corpus for your child’s higher education- Mutual fund Investments for Child’s Higher Education Mutual funds can be broadly categorized into...

Mr. Talukdar lives in Kolkata with his wife and 3 years old son. Though Mr. Talukdar works in a small private company, he wants his son to be a computer engineer. It will take 15 years for his son to become a graduate. If the cost of graduation in today’s time is Rs 5 lakh, then how much does he need to spend to send his son to a reputed engineering college in 15 years? Let’s evaluate it. Son’s age 3 years Cost of Graduation in Today’s Time Rs. 5 lakh Time left for Graduation 15 years Inflation Rate 10% p. a The Cost will be at the Time of Graduation Rs. 20.88 lakh Mr. Talukdar needs to Invest per Month Rs. 4180/- The cost of education after 15 years will be Rs. 20.88 lakh due to inflation and to accomplish this goal, Mr. Talukdar needs to invest Rs. 4180 per month. But if Mr. Talukdar starts his investment a few years later from now, then he needs to invest more amounts per month for his son’s education. If you also want to ensure the best child education for your child, then you should be equipped financially. Every parent wants to offer the best child education plan to their children so that they can successfully establish themselves in this steep competitive era. Education is the top-most priority for parents in today’s era. But the cost of education is increasing rapidly and thus, it’s becoming difficult for parents to meet the financial requirements for their children’s education. Now, people have understood the significance of financial planning by understanding the...

When it comes to quality education, Indian parents leave no stone unturned. To safeguard your child’s future against all odds, you need a child . With the growing cost of education, saving for multiple goals like school, higher education, college, marriage, and house, and keeping up with different education needs like gadgets, school trips or books is becoming harder for Indian parents. A child investment plan helps you manage all these expenses timely and seamlessly. It helps you create a solid plan based on your child’s unique goals. With a good taxes and reduce the looming threat of financial stress on your family. In this blog, we cover all you need to know about child investment plans and how easy it is to secure your child’s bright future! Chapter 1: Best Child Investment Plans in 2022 Chapter 2: Importance of child investment plans Chapter 3: Benefits of child investment plans Chapter 4: The right time to invest in child investment plans Chapter 5: Key milestones to plan for child investment plans Chapter 6: Types of child investment plans Chapter 7: Child investment plan calculators Chapter 8: How to choose the right child investment plan There is no better gift that a parent can give to their child, than the promise of a secure future. There are critical aspects that a parent should never ignore like the rising cost of education, stationary, books, medical expenses, etc. Here are some of the best-saving child investment plans: • UTI CCF – Investment Plan – Growth ...

Planning for the future financial security of a child is a challenging task. Individuals attempt to create a robust financial cushion for their children, but, at the hour of truth, find that the funds they have accumulated are not sufficient. Creating a financial backup for a child may require parents, not to invest in merely a single plan, but a few good child investment plans on the market today. The key to making investments to safeguard a child’s financial future is to make the appropriate choices of investment at the correct time. Like all investments, making plans for the future involve taking stock of each individual requirement and the financial goals that are unique to particular parents and their children. Children are the world to parents and they strive hard to give them the best. When it comes to their education and financially securing their future, timely investments need to be the top priority. The rise in education costs makes it important to invest for your child. If you are a parent looking for the best What to Look For in a Child-Saving Plan While most parents realize the requirement to save a corpus for the future of their children, they do not fully grasp the nature of what that corpus should account for. Hence, if parents, or one parent is earning a sufficient salary at present, enough to support their household and pay for the current educational and other needs of children, the same amount might not suffice in the future. As inflation may be on the...

Parenthood is a challenging experience. With growing Selecting the best one-time investment plan for your child’s future can assist in guaranteeing that they have enough money for each stage of their life. Getting the finest kid education plan is recommended as just a one-time investment that shields children after your death while also creating enough funds to pay for their educational ambitions. Today’s Indian market is swamped with new kid education plans that serve as one-time investment solutions with various features and rewards. Creating the optimal selection is to making an informed decision promptly. Below are some significant factors to consider while selecting the best one-time investment plan for the child. • The benefit amount from the child investment plans should be suitable for individuals with the inconsistent financial flow. The payouts from these investment plans should be able to support their requirement. • Compared to other normal policy rates, the kid plan premium is lower. This is because the insurance is purchased in cash rather than in installments. There are, however, several child education options, including making monthly premium payments. • Another feature is the tax benefit, which allows you to take benefits of Section 80C in the first year for the sole premium plan vs standard plans Deposits in equity Equity funds have historically generated around 12% to 15% annual returns. Mutual funds are generally regarded as a secure investment that al...

Education has become very expensive in India. SIP plans for child education are the solution! Statistics show that educational inflation is around 11% in the country today, and the cost of education is expected to soar in the future. A report by the 2008-14 stated that the annual cost of education burgeoned by 2.75 times when compared to 2008, whereas the per-capita income had only increased by 2.49 times, indicating the mismatch in the income growth and the increase in the cost of education. High tuition fees coupled with the difficulty of paying bills and staying independent cause highly qualified and bright minds to even refrain from applying to colleges. Tuition rates are increasing all over the world and are rising faster than the growth in per capita income. Looking at these expenses from an exchange rate perspective, rupee owners will always have a disadvantage in terms of the current account balance, relative interest rates, and inflation which cause a weakening of the Rupee. In the near future, the trend would continue hence ballooning the fees even further. Investing is a mantra that can be followed to rise above the tide of this soaring educational inflation. A wealthy corpus is accumulated and the effects are more prominent when the investor starts saving at an earlier stage owing to the compounding effect. SIP is a Systematic Investment Plan. It is a facility offered by mutual funds to investors to invest in a fund properly. With a SIP facility, investors can ...

Amit, a 32-year-old Mumbai based Manager in MNC, was happy that his daughter has completed her playschool and will be starting school. He went to get her admission done in one of the best schools in the city. But the yearly fees of a nursery class of Rs.1.8 lakhs came as a rude shock to him. Not willing to compromise, Amit decided to go ahead with this, even if it meant cutting down his own expenses. Amit is not alone; most parents in India today are facing this reality of almost insane growth in the education cost. And while they are able to stretch and meet the expenses right now, when it comes to higher education, the amount needed will be too high. So, what do you do? Read on to know how you can make sure you can fund your children’s higher education with ease: Education costs have sky-rocketed While the government defined inflation for the last 10 years has been in the 4-8% range, the cost of education in India has increased in double digits in these years. The demand for quality education and limited seats in government-aided premier institutes like IITs have meant the private sector has stepped in to fill the gap and are asking for exorbitant fees. Even the government-aided/controlled institutes are not far behind. With the government asking them to become self-sufficient, these colleges have been increasing the fees to cover their costs. For instance, today, the fee of 2 years MBA at IIM Ahmedabad is nearly Rs.19 lakhs. In 2009, it was around Rs. 4.5 lakhs – that’s...