Better Saving option for new born daughter – Please suggest !

POSTED BY samay ON June 29, 2014 9:48 pm COMMENTS (4)


My brother is blessed with a baby girl. He is looking for best options of saving for future of his daughter. Please advise to make some investment for short term (3-5 yrs) and long term (15-20 yrs).

4 replies on this article “Better Saving option for new born daughter – Please suggest !”

  1. samay says:

    Ashish, Hemanth and Sharath Thank you & Apprciate your response…

  2. Ashish Garg says:


    I presume the girl is just born, so your brother has about 4 yrs for her school admission. You may look at debt funds (as suggested) for this goal.

    Then for yearly school fees, you may look at opening an RD every year for a certain amount depending upon the school fee. Say, if the annual fee is 25000, you can look at an RD of 2000 per month for 12 month and then repeat it every year. This will reduce your burden at the start of every new session at school, as the investment will be divided over the year.

    For longer term such as higher education (Graduation / post graduation / marriage), start investing in PPF + Equity MF (via SIP). This shall give you better returns over this long period. You can presume a definite amount (adjusting inflation) and start investing.

    Apart from that, hope your brother has already covered himself through life insurance policy (preferably an online term plan) and health / mediclaim policy, to safeguard the family.


  3. sharath Mumbai says:

    As Hemanth suggested, you can invest in those instruments as per the investment term.
    You need to take taxation into consideration. So, ppf & equity MFs work better.
    On other note, are these time frames in-line with some goals ? 3-5 years and 15-20 years ? I would suggest set a goal -like higher education, marriage, or some gift on 10th or 5th birthday etc. Then you can invest properly when you have a goal in mind and time to achieve it. Please do not take any child plans as advertised in the media. Invest only in simple instruments that you are aware of.

  4. Hemanth Chandra says:

    Short term – he can invest in debt funds.

    Long Term – PPF, Equity funds

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