which mutual fund to invest for low risk for the goals of child education and marriage ?

POSTED BY raje ON June 4, 2014 8:56 pm COMMENTS (3)

hello sir,

I am 32 yr and now want to invest in mutual fund for 15 years from now which helps to meet my child marriage and education needs. already i had taken two lic policies for my child namely child future plan and child career plan and paying quarterly premium of Rs.7000 nearly.

Now I want to invest 5K per month thro SIP and like to invest in low risk fund.i gone thro ur blog and understand the basics of mutual funds and sip.thanks for ur great work in educating investors .

Regards ,

Raje

3 replies on this article “which mutual fund to invest for low risk for the goals of child education and marriage ?”

  1. Ashish Garg says:

    As stated by Hemanth as well, mostly child plans does not give great returns as we generally expect.

    Since you are looking at your child’s education and marriage and having 15 yrs to invest, and also looking at a low risk fund, I suggest opt for 2 funds, 1 in balanced category and 1 in Debt category. If you would have ready to take higher risk, suggest to invest in Equity instead of balanced, but then it appears you are not to confident on equities (though you have good 15 yrs in hand). May be you can start with Balanced + Debt and once you feel comfortable in next 3-4 years, shift to Equity + Debt.

    Suggest keep 2K (Balanced) + 3K (Debt) for now and get familiar with MF investing. Later you may shift to 3K (Equity) + 2K (Debt).

    Ashish

  2. Dhawal Sharma says:

    As per your allocation of 5k per month in MFs for your child’s future, i would recommend to split this amount into 2 funds of 2.5k each into:
    1) HDFC Children Gift Fund – Investment plan
    2) UTI Children Career Fund

    Both are old funds (10 years or more) with proven track record – with annualized returns of 18% and 10% respectively..You can check details about these funds at moneycontrol.com or valueresearchonline.com

    I am sure you would get decent return if you continue your investments for long term..Can contact me for details at dk.dhawal@gmail.com

  3. Hemanth Chandra says:

    Do you really think that the child plans will give good returns….

    My father has invested 10k in a child plan which promised to give 1,00000 once I become major…. afterwards the rules have changed saying that no mutual fund should guarantee returns and the plan was also changed to some other name because of this and today (after 23 years) the ROI is just 8% …. Do you think it is a good ROI….. So please just go through the past history of plan and similar child plans…. see are they really beneficial….. I don’t think they are good….

    If you want low risk, the returns also will be low…. u can invest in debt funds for low risk….. As you are planning to invest for 15 years which is really good period please invest in equity funds and PPF… you will get good returns…..

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