Should I invest in RD or Mutual funds for my baby Girl ?

POSTED BY mahee.hmp ON December 19, 2013 8:17 am COMMENTS (2)

Hi Manish,

I have gone through most of your articles. I need a suggestion from you. I’m a software engineer and I’m earning 50k monthly and my savings are as below

  • 5k for chit
  • 10k in MF(SIP in different firms)
  • 2k for RD (which is diverted to pay LIC premium) .

recently I have a baby girl. i would like to divert some fund for my baby’s future. further I can afford to invest 3k more per month. Please suggest me some good plan. whether to invest in RD or to invest in MF again or any other plan.

It would be helpful for me if you suggest whether I’m on right track or not.

Thanks,
Maheedhar

2 replies on this article “Should I invest in RD or Mutual funds for my baby Girl ?”

  1. ashalanshu says:

    Dear Maheedhar, if you die today, who ‘ll fund all the expenses for your family and your d’ter’s education and career?

    thanks

    Ashal

  2. Ashish Garg says:

    Hi Maheedhar,

    Investing in RD, may not beat the inflation, also the interest from RD is taxable. I suggest since you are looking at long term (for your child’s future) look at SIP route for MF and invest in a good Large cap fund. Keep a check on the fund performance and take decision to continue with same fund or divert to another.

    I have a 4 yr old son and when he was born, I thought of buying a child plan but later decided against it and started an SIP, which is anyways better than any child plan on any given day.

    Ashish Garg

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