Child Investment Plans-Every parents wants their child’s future secure life education. for this, they are start investing in many schemes since their birth. This planning goes ahead in children’s education and marriage. If you are thinking of investing in similar schemes, then we will tell you about five such fantastic plans in which you can get good returns. There are also some schemes whose maturity can get up to millions of rupees.
If you want to secure your child’s education, expenses in case of your sudden demise go for a plain vanilla term insurance plan that will take care of everything. Following the insurance, you can look at the following options to build a solid corpus for your child’s education. Here are a few great child investment plans.
Many parents these days look at the Unit Linked Insurance Plans and children saving plans that insurance companies and fund houses tend to provide. They do provide insurance and some sort of safety comfort for your child’s education, but, the returns are poor. In fact, if you deduct the expense associated with these child’s plans your returns are reduced.
Types Of Child Investment Plans
These 5 schemes are more beneficial for future plannings of children, will get millions of rupees. Best investment plan with high returns.
- Sukanya Samriddhi Yojana
- Public Provident Fund (PPF)
- Systematic Investment Plan (SIP)
- Bank Fixed Deposit
- Child Life Insurance
Read in Details
- #Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana of the post office is quite popular for the bright future of girls. This scheme helps in education and daughter to marriage. The specialty of the scheme is that its maturity is 21 years. Whereas investment has to be made for only 14 years. You can deposit a maximum of 1.50 lakh rupees annually under this scheme. If you make a monthly deposit then you will have to pay 12500 rupees every month. The minimum amount is 250. The daughter’s age should be less then 10 years for the application. In this, when the daughter is 18 year’s old she can withdraw 50 percent of the amount deposited for her studies or marriage. The Account opens in a joint with parents. Under Sukanya Samriddhi Yojana, if you deposit Rs 1.5 lakh annually for 14 years, then the total investment amount will be Rs 21 lakh. It will also attract interest of 7.6% per annum. This means that when you earn money at maturity it Will be around 63 lakh rupees. For more information Government Schemes For Girls
2. #Public Provident Fund (PPF)
Investments can be made in this scheme for better future of children(Child Investment Plans). Public Provident Fund (PPF) offer you up to 7.1% interest rate. It is considered very safe from the investment point of view. The maturity period of PPF is 15 Years. However it can be extended further over a period of 5-5 years. For these extensions, From-H has to be submitted. Its returns are completely tax free. PPF account can be opened for children below 18 years. In this, an account will be opened in joint with parents. If you have two children, you can invest up to 3 lakh by opening a separate PPF account. Because up to one and half lakh rupees investment is not taxed.
3. #Systematic Investment Plan (SIP)
Systematic Investment Plan (SIP) is likely to yield higher returns in long term compared to other investment options. Since children’s education and marriage take a lot of time, you can invest in a systematic Investment Plan (SIP). Installments are also cheap in this. With this, you can make millions of rupees every month with a small investment. Depending on the need of the child. You can invest it for 10 to 15 years. There is a possibility of doubling profits by investing in a good company. For more information about this click here
4. #Bank Fixed Deposit
Bank FDs are also very popular in India for the safety and risk-free returns they offer. Some of the banks now also offer 5-year FDs. On maturity, you can renew your FD (principal + interest) for long-term capital growth (Best Savings Plan).- 5 Zero Balance Saving Account with good Interest
5 #Child Life Insurance
These are invest-cum-insurance plans that help you build a corpus for your child while also offering life coverage. So, the best child insurance plan will help you ensure that the financial needs of your child are well taken care of even in your absence.
There is no shortage of investment plans that you can consider for the future of your child. To decide, consider factors like your age, risk appetite, investment tenure, available capital, and child’s age and ambition.
You can always consult a professional financial planner to help you make the decision
For More Information – Child Investment Plan in India