February 16, 2014 4:47 pm
I have a daughter of 1 year old. Kindly advise some investment plans for her future.
The one you can look at is PPF, this is the most safe and has the highest IRR (Gives Compounding Interest) in comparison to all the investment products with lock in period.
You can increase or decrease the amounts being invested according to your earning at any given point of time, however the highest limit permissible is 1 lac a year and Rs. 500 being minimum in a year.
It is advisable that you do a monthly SIP for a particular amount and keep on adding to it as and when you have extra money.
The entire amount including the interest in tax free on maturity and you can also partially withdraw after 5 years, though it is not advisable.
You can also get deduction under Income Tax for the said amount invested under 80C.
Dear Veeresh, are your life, health insurance, emergency funding in place? If not, do these things first. If yes, please invest in FDs, PPF, PF or MFs for your d’ter under your own name.
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