August 2, 2013 2:33 pm
I am looking for some investment for my 2 years old daughter for her education. Will you recommend any specific plan?
Dear Divya, if the idea is to save & invest for your d’ter, please split the 2 things. Insurance & Investment. Insurance should be on your life so that in your absence, there is enough money to fulfill the dreams for your d’ter you are making. For investment, please invest in pure investment instruments like PPF, FDs, MFs, RDs…..
Dear Divya, do you want to save & invest for your D’ter or do you want to put your money in a financial product having Child in it’s name?
Ashal, I want to save and invest for my D’ter.
Stay away from all child plans.
Determine how much you need to save. this will give you an idea:
Then use a combination of
Canara Robeco Income growth fund (40-50% of what you must save each month) (debt fund low risk)
Frankin India Blue Chip (60-50%) (equity fund high risk)
One more fund like ICICI Pru Discovery can also be added for 10% of equity component.
You can use a PPF but it will not mature by the time your kid completes 12th stand
Once your kid reaches 10th start removing funds from the equity fund and move them to saver instruments like FDs
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