- Date : 11/10/2017
- Read: 3 mins
Looking for ways to secure the financial needs of your daughter? Here are several options that can help your daughter fulfill her dreams and ambitions.
Having a daughter is truly a blessing. But though most parents are overjoyed when welcoming a baby girl into their family, they often worry about her financially security and future. When it comes to providing financial stability, there are many things you can do as a parent. Here are some instruments you can consider investing in, if you want to give your daughter a better life.
Child Plans:
Although most parents would refrain from thinking of this, it is essential to plan for your daughter’s financial security, in case you or your partner meets an untimely death. A child insurance plan is beneficial in several ways here.
- It can provide financial aid in the form of a lumpsum amount to your daughter.
- Additionally, all future premiums are waived off, and the insurer will continue to reinvest this money.
The child gets payouts at certain intervals, as specified in the policy, ensuring that all her needs are taken care of at different stages.
Related: Child insurance: How to make sure your child gets funds at the right time
Education Loans:
All parents want their daughters to have the best education. However, with costs constantly rising, this often seems more like a dream. An education loan makes it possible to give your little girl the education she wants. With an education calculator, you can find out just how much you need for her future.
Points to remember
- The interest rate on these loans may differ according to the loan amount availed.
- Female students are sometimes offered lower interest rates or discounts.
- Most banks offer a moratorium period; i.e. a period during which the borrower doesn’t have to repay the loaned amount.
This grace period ends once your daughter has found a job and starts working. After this, the loan EMIs must be repaid.
Related: All you need to know about education loan in India [Infographic]
Investment Schemes:
There are quite a few investment schemes in India, aimed specifically at providing a financially secure future for daughters:
Sukanya Samriddhi Scheme - Launched under the ‘Beti Bachao, Beti Padhao’ campaign, you can open an account under this scheme before your daughter turns 10 years old. The minimal investment amount is Rs. 1000, while the maximum amount that can be deposited in one financial year is Rs. 1.5 Lakhs.
Gold ETFs - This is another option for investing on a long-term basis if you have a daughter. Gold is an important part of many occasions that Indians celebrate, especially weddings. Gold ETFs allow you to invest in gold without worrying about physical storage and security. When you decide to redeem these ETFs, you can get it either in the form of physical gold or in the form of money. If you plan to start saving early for your daughter’s wedding, gold ETFs are a suitable choice.
SIPs - Systematic Investment Plans (SIPs), are mutual funds, where you invest money every month in equities, debt or both. If you start investing in these at an early age, you can enjoy a plethora of benefits. You can stop investing any time and withdraw the accumulated money, and use it for your daughter’s welfare, education, or to fulfil any other dream your little girl has.
Related: Rupee-cost averaging: Why SIPs are more profitable?
Having a daughter is truly a blessing. But though most parents are overjoyed when welcoming a baby girl into their family, they often worry about her financially security and future. When it comes to providing financial stability, there are many things you can do as a parent. Here are some instruments you can consider investing in, if you want to give your daughter a better life.
Child Plans:
Although most parents would refrain from thinking of this, it is essential to plan for your daughter’s financial security, in case you or your partner meets an untimely death. A child insurance plan is beneficial in several ways here.
- It can provide financial aid in the form of a lumpsum amount to your daughter.
- Additionally, all future premiums are waived off, and the insurer will continue to reinvest this money.
The child gets payouts at certain intervals, as specified in the policy, ensuring that all her needs are taken care of at different stages.
Related: Child insurance: How to make sure your child gets funds at the right time
Education Loans:
All parents want their daughters to have the best education. However, with costs constantly rising, this often seems more like a dream. An education loan makes it possible to give your little girl the education she wants. With an education calculator, you can find out just how much you need for her future.
Points to remember
- The interest rate on these loans may differ according to the loan amount availed.
- Female students are sometimes offered lower interest rates or discounts.
- Most banks offer a moratorium period; i.e. a period during which the borrower doesn’t have to repay the loaned amount.
This grace period ends once your daughter has found a job and starts working. After this, the loan EMIs must be repaid.
Related: All you need to know about education loan in India [Infographic]
Investment Schemes:
There are quite a few investment schemes in India, aimed specifically at providing a financially secure future for daughters:
Sukanya Samriddhi Scheme - Launched under the ‘Beti Bachao, Beti Padhao’ campaign, you can open an account under this scheme before your daughter turns 10 years old. The minimal investment amount is Rs. 1000, while the maximum amount that can be deposited in one financial year is Rs. 1.5 Lakhs.
Gold ETFs - This is another option for investing on a long-term basis if you have a daughter. Gold is an important part of many occasions that Indians celebrate, especially weddings. Gold ETFs allow you to invest in gold without worrying about physical storage and security. When you decide to redeem these ETFs, you can get it either in the form of physical gold or in the form of money. If you plan to start saving early for your daughter’s wedding, gold ETFs are a suitable choice.
SIPs - Systematic Investment Plans (SIPs), are mutual funds, where you invest money every month in equities, debt or both. If you start investing in these at an early age, you can enjoy a plethora of benefits. You can stop investing any time and withdraw the accumulated money, and use it for your daughter’s welfare, education, or to fulfil any other dream your little girl has.
Related: Rupee-cost averaging: Why SIPs are more profitable?
