Best investment schemes for your children's future..!?

Family is the foundation of our life. We do everything we can to ensure peace of mind for family members. In particular, parents think about their children's future, think of many ways, and take various actions. Saving is one of them. Once a child is born, parents look for various investment options to secure their children's future. In such a situation, there is always a search for good income-generating projects in society. If you are also in search of such a project, this post will help you. With the plans we have mentioned in this post, you can invest a little every month and add up to a substantial amount of funds as the child grows. Apart from the higher education of the children, this amount can be spent on their marriage and other needs in the future.

General Provident Fund:

Public Provident Fund is also known as PPF. Given the long lock-in period, this would be a good choice. If your child is under 18 years of age, you can open a PPF account for him. This account matures in 15 years. So the sooner you open this account for the child, the more useful it will be for them.

For example, let's say your child is 4 or 5 years old. Now you open a PPF account for him. When he turns 19 or 20, he gets the amount for his requirement. After 18 years, your child can also operate this account himself. And he can withdraw money from it if he wants. At present it fetches 7.1 percent interest.
Wealth Saving Scheme:
If you have a girl child, you can invest in a wealth-saving scheme called sukanya Samriti Yojana for her future. parents of girl children up to 10 years of age can open an account under this scheme at any post office or government bank. The good thing about sukanya Samriti Yojana is that it doesn't put too much burden on your financial position.

Under this scheme, you can invest from a minimum of Rs.250 to a maximum of Rs.1.50 lakh per annum. The scheme matures in 21 years. But when the child turns 18, you can withdraw some amount from the account for his education. But the full amount will be available only after the completion of 21 years. Currently, the scheme offers 8 percent compounding interest.



SIP:

While doing financial planning for children, you can also choose the option of investing in mutual funds. SIP is the best way to do this. A systematic investment plan is called SIP. It is considered a safe option to invest in mutual funds. You can start a SIP with just Rs.100. Its long-term investment (long term) gives better returns. Apart from the children's education, the proceeds can also be used for their other necessary expenses.

You get compounding benefits in people SIP. However, being linked to the market, it cannot claim guaranteed returns. Most experts believe that this scheme will give an average return of 12 percent.

Fixed Deposit:

Fixed Deposit is considered a safe investment by most people. It gives you better interest as compared to savings accounts. You can open FD from any bank or post office. You can do this with 7 days to 10 years of FD. The good thing is that it can be easily retracted if needed.
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Sowmiya Sriram

27/06/2023 07:22 PM