Child future planning

POSTED BY Arti ON August 7, 2011 11:26 pm COMMENTS (3)


I am a new joinee to this group.

I have a son who is 1.5 years old. I want to have a corpus of around 50 lacs after 18 years for his education and other needs.

Please let me know how much I should save mothly and invest where to get the required amount.



3 replies on this article “Child future planning”

  1. You got into the process of financial planning so that you get clarity on your financial goals. This is perfect

    Setting a financial goal or defining an SIP amount for the goal is done for you, now what is the next step.

    The next step is you being very clear on what you are entering into. You are making a commitment to stick to your investment commitment till you reach or meet your goal.

    Once the goal is set as a next step you got to set yourself for that goal.

    To make it simple you can divide your financial goals into two parts
    1. Result Goal- eg child corpus of 50 lacs after 18 yrs
    2. Process Goals- eg deciding on the fund and then each month doing an SIP of 10000 amount till you meet your goal.

    This is how I coach people on they meeting their goals

  2. bharat shah says:

    further to my reply to the query i like to add that if you like to insure the corpus in case of demise of the person saving for the child,you can have a term insurance of 50 lacs of that person for his working life years, which may cost less than @ 1 month emi i.e rs.9111/-. this combination of term insurance + mf investment would work better than any child plan.

  3. bharat shah says:

    if you use ‘calculator’ in this blog , you get monthly investment required @9111/- for 16.5 yrs. at rate of 12% for corpus at the end rs.5000000 , which most expect from a good diversified mutual fund if invested for long term. you should monitor the performance of the mutual fund selected v/s the category average , and the index at least once in a year, and carry necessary change ,if required. also you should move to fixed return investment , sometime before, say 2-3 yrs, you approach your goal , i.e. your son getting 18 years, so you have not to suffer due to unforeseen steep downfall in equity market affecting performance of diversified mf. you can select a good equity oriented mf. instead of a diversified mf .

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