All parents wish to provide the best care and facilities to their children. Their child’s well-being and happiness is always their top priority, even at the cost of their well-being. One of the best ways to ensure that you child’s future is secured and taken care of is investing in quality education for your child. To ensure a quality education for your child, you must start saving and investing soon to ensure that you do not fall short of funds when needed. In this article, we will focus of different investment options where you can save to invest for your child’s higher education.
Best Investment options for Child
Financial planning and investing for your child is definitely not a cakewalk. To ensure that you have a good child education plan, it is important that you invest in the right investment options at the right time. Here are a few investment options that you can consider creating a substantial sum of money for your child’s future educational needs.
- Systematic Investment Plan (SIP)
Systematic Investment Plan commonly known as SIP is one of the ways of investing in mutual funds. SIP investment allows investors to break their investment amount into smaller, insignificant amount. SIP investment is ideal for long-term investment objectives such as creating a retirement fund, or saving for your child’ s higher education or marriage. SIP aids to decrease the average cost of the units of mutual funds purchased due to the concept of rupee cost averaging. - Public Provident Fund (PPF)
Backed by the government of India, PPF schemes are one of the most widely availed investments. These investment options are ideal for investors looking for long-term investment options for their children as they have a maturity period of 15 years. The interest rates of PPF schemes are revised by the government on a quarterly basis. Just like SSY schemes, PPF schemes also belong to the EEE category. Subscribers of PPF schemes are assured guaranteed returns every year. These schemes are a part of Section 80C tax-saving investments and offer a tax deduction of up to Rs1.5 lac u/s 80C of the IT Act, 1961. - Sukanya Samridhi Yojana (SSY)
Sukanaya Samridhi Yojana was launched by the Indian government to ensure a bright future for an individual’s girl child. This was introduced as a part of the social initiative – ‘Beti Bachao, Beti Padhao’ campaign which was designed to promote saving girl child. This scheme allows legal guardians or parents to create a separate savings account for their girl child. One must ensure that their girl child is less than ten years of age. The scheme later matures once the girl is married after 18 years of age or after 21 years from the date of creating the account – whichever is lower. - Stock markets
If you are well-versed with the workings of the markets, you can also consider making a direct investment in the stocks. Long-term investments for 10 years or more in the right stocks at the right time can fetch you significantly high returns. As an investor, you can also choose to take help of market experts who can guide you in making the right investment decision.
