What are the best ways to secure my child’s future ?

POSTED BY Nayandeep Saha ON May 23, 2014 11:56 am COMMENTS (9)

I wonder what are the best ways to secure my child’s future. Appreciate valuable suggestions of everyone out there.

9 replies on this article “What are the best ways to secure my child’s future ?”

  1. Senthil T says:

    Hi Nayandeep,

    Welcome to world of parenting. I read about the following steps in some article/blog (not sure) which personally I found meaningful. Hopefully it helps you as well:

    Investment for Kids can be bifurcated in three parts:

    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.

  2. Nayandeep Saha says:

    I also had two apartments that I will rent out as a constant source of income.

  3. Nayandeep Saha says:

    The child plans don’t at all consider inflation. After 20 yrs or so you will receive max 6 lacs or so at a huge premium per anum. I am personally doing SIP in some MFs every month and at the same time will open a PPF for my child.

  4. Ashwin Rao says:

    Thank you Hemanth….
    I will opt for a PPF account right away.

    Kind Regards,
    Ashwin

  5. Ashwin Rao says:

    Hi All…

    On the same topic, is taking child plans (the kind of available with LIC, HDFC and others) good enough for children’s future. Do they give good returns ?

    I am asking this as I learnt from this forum that endowment policies and those investment+insurance kind of policies (ex: jeevan aanand) are not good. So are these child policies too something like that or are they better ?

    Kind Regards,
    Ashwin

    1. Hemanth Chandra says:

      Dear Ashwin,

      As per my knowledge, the child plans also doesn’t give much returns.

      Actually my dad has invested in some UTI child plan soon after I born and after 22 years, the return was just around 8%. So, I think they are also not that good.

      Better go with SIPs in equity funds, PPF.

      Regards,
      Hemanth.

  6. Anand says:

    1. Take enough term insurance
    2. Start a SIP for child’s education; and keep on increasing SIP amount every year.

  7. Nayandeep Saha says:

    Thanks Hemanth. That’s exactly what I have in my mind and doing. I just wanted to see if there are different views. Thank You

  8. Hemanth Chandra says:

    First please insure yourself.

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