Which option out of these 3 will you recommend for my Child investments ?

POSTED BY rahul15khare ON May 21, 2014 10:35 pm COMMENTS (7)

Hi All,

I am looking for a child plan for my daughter (about to be 2 yr) having guaranteed returns.

After researching and talking to agents over phone and personally I drilled down to three options. :

1. Aviva Young Scholar Secure (suggested by Moneycontrol agent)

2. LIC New Endowment Plan (6-7 individual policies so that each matures every year once the kid is 18 yr old) (suggested by LIC agent)

3. PPF + term  insurance (my internet research)

I personally feel plan-3 should give maximum benefit. Need help to find pros and cons of these and if there is anything better out there in the market. Moderator: Kindly move the thread to right Category if it is not.

Thanks in advance,


7 replies on this article “Which option out of these 3 will you recommend for my Child investments ?”

  1. rahul15khare says:

    Thanks much Ashish for your valuable suggestions. I surely will go out for these type of investments.
    Good day!

  2. Ashish Garg says:

    Option 3 is Best.

    Invest in PPF to the max limit availbale
    Take term plan for your self (to fill the gap in case something happens to you). Do not consider this term plan as investment but as safety cover.

    As rightly pointed out, you should start SIP in 1-2 diversified equity mutual fund schemes, with a time horizon of 10-15 years. Keep tracking the performance of your fund at regular interval, say every year and then take decision to extend the SIP.

    Consider investment in RD for shorter goals such as annual school fees, transport fee etc. This will help you to save for smaller goals which keep on recurring every year.

    I do it the same way for my kid. I start an RD every year for 9 months, on maturity use this amount to pay annual school and transport fees. Since I keep saving on monthly basis for these fees, it doesn’t hurt when it comes to pay a big amount every year at the start of a new session.


  3. rahul15khare says:

    Thanks Sharath.
    Had a couple of doubts.

    1. Which would be better: SIP or Recurring deposit?
    2. What do you mean by emergency funds?

    Appreciate replies on this.

  4. sharath Mumbai says:

    PPF is good option as it has guaranteed returns. But that alone is not enough to beat the inflation. You should also consider some equity and balanced mutual funds. Please start doing some SIP in these funds if not already doing.
    PPF + SIP + Term insurance + emergency fund is the mantra.

  5. rahul15khare says:

    Hi Hemanth…thanks much for replying.
    I calculated manually and PPF seems the best,

    1. Hemanth Chandra says:

      Good 🙂

  6. Hemanth Chandra says:

    No endowment plans please.

    Term insurance is not investment.

    I will suggest PPF for guaranteed returns.

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