My parents want to save money for my child who is a minor. I do not want to go for any child plan as I dont see much benefit in those plans. I would rather opt for a term insurance and some other means of direct investment like MF/PPF/RD etc. I want suggestions on what is the best avenue
1) Open a PPF account for minor. I will be the guardian. I have read that the combined investment limit of my own PPF and minor’s PPF account is 1L per annum and investment into the minor account will be regarded as my income and will have tax implications. So If my parents put money into that, will I have to pay tax on it?
2) Recurring deposit where me or my parents can regularly put money in. What are the tax implications?
3) Fixed deposit – made by me or my parents on childs name. What are the tax implications?
4) Some SIP
Please provide suggestions based on your experience