Business

Choose Best investment Plan For Your Child

Published

3 years ago

November 24, 2020

Giving a secure financial future for children is a constant worry in the minds of parents. All parents irrespective of their status and income levels wish for their child to have the best and all opportunities they desire. However, with limited income and rising expenses, it becomes difficult to think of amassing the required wealth. Choose the investment plan for your Child.

Planning for Investments

During the last 10 years, all expenditure related to education of a child has risen by a whopping 150% and nearly 20% of a household income is spent on a child’s higher education. Keeping this in mind, you as a parent should keep the following objectives in mind while looking for an investment Plan For Your Child.

Plan for each goal with timelines – Education, Marriage , Medical cover – each of these has an importance per timelines and your investments should reflect that.
Understand Maturity and Returns – To achieve these personal goals, investment is crucial. One has to meticulously calculate the income or the returns at the end of the tenors / maturity.
Early Start – Better Returns – When you start investing early the compounding effect can fight the rising inflation and also grow in the given time frame. The discipline to invest regularly for your child’s future will result in the accumulation of wealth.

Best Investment Options in the Market

When investing in the market, investors must not only see the higher returns but also check how much risk one can bear.

Fixed Deposit(FD)

In a fixed deposit you can demarcate a portion of your income for a fixed interest rate for a fixed tenure. This is a saviour for those who are risk-averse and looking for decent returns.

FDs are issued by Banks and Non-Banking Financial Companies (NBFCs) for tenors ranging from 7 days to 5 years for fixed interest rates. In comparison, the FD rates offered by banks are substantially lower than NBFCs.

FDs issued by NBFCs are a lucrative option for creating a credible future for your children. FD rates in India are decent and can be a spectacular option to grow your investment for your child’s future.

One such best and profitable option for your child is Bajaj Finance Child FD which offers higher and guaranteed returns up to 6.85%. You can choose flexible tenor ranging from 12 months to 60 months and even choose the frequency of interest payouts as monthly, quarterly, half-yearly or yearly. Bajaj Finance FD is rated safe with CRISIL’s FAAA/Stable rating and ICRA’s MAAA/Stable rating. This means that the returns on your investment are guaranteed. You can even opt for a premature withdrawal of funds or avail a loan against FD in case of financial emergencies.

Public Provident Fund(PPF)

PPF is also a safe investment option to ensure commendable returns and where the goal is long-term returns on investment. Indian Government issues and fixes the interest rates for PPF.

PPF is a tax-free saving option where the returns, investment amount are exempt from tax. With withdrawal benefits, now you can also part- withdraw and utilise the amount for education and investments for your children. However, PPF investment does not offer the same level of flexibility which an FD offers.

Investment for your child’s future is a huge responsibility as it involves your hard-earned money, dreams and most importantly time. Time and tenor of the plans is one of the major criteria for your returns. Financial products have to be chosen based on history, performance over the years, return on investment, risk factors. Bajaj Finance Child FD is an attractive investment option which offers flexible investment terms and high return on your investment.