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POSTED BY ON April 8, 2013 5:17 pm COMMENTS (3)
I would like to plan for my son’s yearly educational expenses, which is going to start from 3 years from now. Approximate yearly expense is going to be 1 Lac per year on the higher side.(After that this is a repeating expense every year) What type of fund is suitable for achieving this goal?
A balance fund like HDFC Prudence or Any Liquid Funds.
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@FFC and @ Ashal, thank you!.
Yes your understanding was correct, I will investing from now and redemption will happen after 3 years.
Dear Reji, you mean to say, you w’d start investing from today & redemption ‘ll start after 3Y?
If My understanding is correct, please do not opt high Eq. component. Actually you should split it into 2 way. Invest in Eq. for the funds which are needed at least after 5Y & any thing less than 5Y should go for long term debt funds.
Thanks
Ashal
A simple recurring deposit will do the job.
If you want MFs choose a liquid fund. All other debt funds have a higher risk of capital loss.
Almost all liquid funds available have never give negative returns over a quarter/year.
Please stay away from balanced funds. Do spend some time on learning more on types of MFs and when to invest in what.