June 17, 2014 6:47 pm
I am going to become father after 3 months. I want to take a child plan for new born for future studies. Please suggest some good options. Also suggest other investment options which I can do for newborn.
Invest in equity MF through SIP and increase the amount every year. I have been doing the same and my XIRR is more than 30%.
Do not go for so called child plans; their charges are too high.
And of course, take enough term insurance.
Vishal – There are some great tools here http://freefincal.com/ to help you with decisions. Read through them and especially the goal based investing section.
Suggest instead of buying a child plan (ULIP etc), start a PPF account in child’s name and invest upto maximum limit of 1 lakh per year for next 15 years.
Also, you should start SIP in 1-2 diversified equity MFs. This would be a better option than buying some useless ULIP / child plan for the kid.
So called Child plans are of no use.
Check out this article.
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