The hopes and goals of every parent is to give his or her child all the best things that one can think of, such as a good education, wonderful career, or financial comfort. However, with the escalating cost of education, and the overall general cost of living preparing for your child’s or children’s future is significant, it does require careful and early planning. Selecting the best children’s plan investment enables you to secure the financial future of your child and enable him/her to work on his/her selected dream without the limiting factor of money.

Publisher: Consultant – The Need for Early Financial Planning

Beginning an investment plan is the best strategy to ensure you get the most out of your money and save up a fortune for your child’s future. That is, the longer your money is invested the more it compounds over time thereby earning you a higher return. It also allows you to spread our investments over a larger period so they take a smaller portion of your monthly wealth.

Characteristics of the Best Children’s Plan Investment

The right children investment plans should be those that afford growth and some sort of cover. Here are some key features to look for:

• Goal-Oriented Savings: These plans enable an individual nicely plan for a given undertaking say further education, activities extra curriculum or as capital for a new business among others.
• Risk Management: Some children’s investment plans entitle them to life insurance in case the main breadwinner parent is not alive any longer.
• Flexibility: The best plans are also easy to fund, meaning that funding can be curved to fit an individual or company’s situation. 

Popular Investment Options for Securing Your Child’s Future

• Child Education Plans: Unique insurance policies that pay out some cash at several stages of your child’s life, like when they are enrolled for college. These plans usually come with a double tax-shield feature that also has a waiver of premium facility, to ensure that the policy is not dropped on the policyholder’s death.
• Systematic Investment Plans (SIPs): SIPs in equity mutual funds are one of the best investment avenues to create long-term wealth. Therefore, by investing a fixed amount regularly, rupee cost averaging comes into play and the returns start coming investors get it compounded as well. This suits parents with high risk taking propensity for want of creating a big corpus.
• Public Provident Fund (PPF): PPF is a long-term financial savings instrument introduced by the Government of India. The returns are fully tax exempted and secured a fixed rate of interest, which may be an attractive investment for conservative investors.  

Steps to Choose the Best Children’s Plan Investment

• Goal Definition: Identify your child’s future needs, such as education, extracurricular activities, or other aspirations, and estimate the funds required.
• Risk assessment: Decide how much risk you are willing to take. For instance, equity-linked plans are ideal for high growth but come with higher risks, while fixed-income options like PPF are safer.
• Evaluate Lock-In Periods: Best Children’s plans investment often have long lock-in periods. Ensure that the investment aligns with your timeline for specific financial goals.

Read also: https://bhulekhbhoomi.com/