Nowadays everyone is worried about the future of their children. In today’s era of inflation, there are many expenses from child rearing to marriage. For this, children need a lot of money in the future to meet the necessary expenses. For this parents invest in various schemes. But, it is often seen that not every parent is able to raise sufficient funds for the needs of their children. The main reason for this is not paying attention to the fundamentals of investment. If you don’t invest at the right time and at the right place, you won’t get the expected returns. So it is very important that whenever investment is made keeping in mind the future of the child, it should be done very carefully. There are certain things to keep in mind while investing in your child’s future. Let’s take a look at all those things.

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Basic needs of children like education have become very expensive due to rising inflation. Weddings these days also cost a lot of money. So the earlier planning and investment is made for the children’s future, the greater the benefits. If investments can be started soon after the child is born, a large amount of money will accumulate by the time the child turns 18.

While planning for a child’s future, investing in the right place is also important. There are many schemes in the market including Sukanya Samriddhi Yojana (SSY), Post Office Monthly Income Scheme, LIC’s Jeevan Tarun Plan, Shishu Bima Plan and Mutual Funds. So that the future of the child can be secured by investing. In terms of returns and timing, equity mutual funds can be a good option.

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Financial discipline required –

To build a large fund for the child, financial discipline must be adopted in any case. This is not a short term investment. This requires proper planning and consistent investment. Whatever scheme one invests in, it should be remembered that it should be consistent.

Diversification in portfolio –

It is important to have diversification in the portfolio. In this case, if there is a low return from an investment or savings scheme, the loss can be offset by investments made elsewhere. Dividing investments into different asset classes keeps the portfolio balanced. You should invest in your future as well as your child. For this, if nothing else, at least invest in insurance.

Published by:Madhurima Dutta

First published:

Tags: Investment Plan, Investment Tips

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