TomorrowMakers

• Parents require a robust investment strategy to save a corpus for their child’s future.
• The best investment options are mutual funds through Systematic Investment Planning (SIP), Sukanya Samriddhi Yojana (SSY), fixed deposits, etc.
• Long-term investment plan strategies help parents accumulate wealth over time for their child’s future requirements.

Are you planning to build financial security for your child? You must create a solid and diversified portfolio for the best investment options. Saving for a child requires a better investment strategy to accumulate wealth over time. Investing in long-term investments will compound your money over the years and generate huge profits in the future. 

Also Read: Tips to create a diversified portfolio and Pick better funds.

What to consider while choosing child investment plans?

Portfolio management is a critical step towards a better tomorrow for your child. Every parent must review and rebalance their portfolio to align the investment plans with their child's goal and market situation. Consider the following key points to create a better portfolio that aligns with your child’s future needs.

• Include more than a single best investment plan for a child.

• Consider a plan that generates enough corpus for educational, health and other miscellaneous expenses.

• Take the rising inflation rate into account.

• Consider including long-term plans which offer assured maturity amounts such as PPF, SSY, or fixed deposits.

What are smart ways to invest in your child's future?

Parents should start investing in some of the best investment options in India to secure money for their child’s future. Following are the ways by which you can start investing for your child smartly.

• Several fixed-income options are available, such as PPF, debt funds, SSY for regular and stable income, fixed deposits, etc. SSY provides tax benefits under section 80E of the Income Tax Act. 

• Invest smartly in mutual funds through SIP and benefit from the rupee cost-averaging technique. Before starting SIP, evaluate the capital required for your child's future expenses. It helps you revise your portfolio and systematically invest it at specific intervals.  

• Create your diversified portfolio by investing in different asset-class investments. It must include equities, bonds, fixed deposits, mutual funds or ETFs for higher returns. 

Also Read: Maximise your wealth by investing in balanced advantage funds.

Which investment plans are best for your child? 

Before choosing any plan, consider the interest, premium, inflation quotient, and educational and medical costs to make a better investment decision. Parents can invest by splitting their money between different plans rather than in one plan. This will diversify your portfolio and will also generate stable returns in the future. Parents should also consider large-term life and health insurance for their children.

Due to inflation, the money sufficient for today will not be enough in the future to fulfil the child's requirements. Therefore, every parent should start investing in child investment plans. These plans allow you to maximise your invested money and get huge profits in the future. 

Find the latest articles on investing here.