September 21, 2014 10:56 pm
My daughter is 5 years old, which child plan is the best in the market?
This is my child plan:
Birth till age 10: Open a PPF account & start fresh SIPs in Equity MFs.
Age 10 till 15: Keep investing in PPF. Systematically transfer Equity Funds to Balanced funds and invest fresh SIPs in Balanced Funds.
Age 15 onwards: Since 15 years period is over, redeem PPF & and MFs and put them in Debt products (Debt MFs, FDs). For the next 3 years, invest fresh SIPs in Debt products.
Age 18: Redeem your Debt products as the need be.
Child plans in the market are not at all good.
Why I am telling for sure is, my father invested in a child plan and the Rate of return on it is just around 7% which I can get by FD.
So, don;t invest in child plans.
Invest in mutual funds, PPF for child’s education.
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