Best Child Plan In India

Inflation seems to be a persisting phenomenon and in the current times prices of pretty much everything is sky-rocketing. In times like these it is imperative to ensure that your child’s future is secure. This initiative has to start from today itself. Nowadays, Investment planning has become necessary and given below are some of the best child plans in India that will help you to create a better tomorrow for your child, even in your absence.

Through SIP, invest in Mutual Fund :

One of the ways to create a substantial capital or your children’s education and future, investing in mutual fund through SIP is a great option. Here you can go for large cap funds or consider investing balance funds. Balance fund is a good option if you consider mutual funds to be risky for the long term. Compared to other balance funds have very little risk. If you invest say around 1,000 INR per month through SIP at say around 13% annual returns in some good performing mutual fund, there is a good chance that you could earn 2.5 lakhs in the next 10 years.

Recurring Deposits (RD) :

If you want to avoid taking the risk then investing through Recurring Deposits is a good idea. You can invest when the interest rate is at the peak to gain maximum profits. At a 9% rate if you invest 1,000 INR each month at the end of 10 years that investment will fetch you 2.8 lakhs.

PPF :

This kind of investment plan is best for the long term, where you can lock your investment for 15 years. In an investment through the PPF, you can put in a maximum amount of 1 lakh per annum and in return expect an 8.75% of interest rate. If you invest around 100,000 INR you can expect a return of 31.10 lakh. Moreover, this return is tax-free.

ULIP Schemes :

This is another investment plan that does not involve too much risk. The plan is also a good option for parents that are not comfortable depending investment schemes of the stock market. The ULIP Schemes has low allocations and has less ULIP charge. Under this kind of investment, you can actually expect at least 4% to 6% return.

Importance of choosing a best child plan in India :

Our lifestyle has become extremely hectic. Today both parents are working, from morning till night each is busy with their respective work. But both are striving to build a better future for them and their child. Unfortunately, in this hectic lifestyle there is not much time left to plan and safe for the short term. Therefore, in the long haul an investment is a wise as it secures your child’s future. It is definitely an idea if you establish the amount of capital you will require in the future for your child’s education, health or anything else. It is also wise to start investing as soon as possible because the sooner you start the possibility of gaining more returns gets high.