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.
Your email address will not be published. Required fields are marked *
Please subscribe me to your Email Newsletters
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Download Our FREE Ebook!
Available only for first 100 people today
New here? Create an account