Investment for Child’s Education using Mutual Funds
You always want your child to excel in whatever he or she does. Education is a big part of this. How do you make sure your funds are adequate to help fulfil his dreams?
Let’s take an example. Your son is three years old, and you have hopes that he will enter a prestigious institution for a bachelor’s degree in engineering when he is 18.
At present, the average fees, generally speaking, for such an engineering education in India is in the range of INR 10 lakhs. If you consider inflation, the fee rises at 10% per annum, then in 15 years when your child is ready for admission, you could be looking at a cost of over INR 40 lakhs.
Mind you, this is just the institution fees. You also need to factor in costs such as hostel accommodation, travel, as well as equipment such as a computer.
That's why it's crucial to have a best investment plan for child.
You need not worry. You have two allies by your side. The first is time, and the second is investments in an avenue, such as mutual funds.
Mutual Funds: The Best Investment Plan for Child
First of all, you should reap the benefits of an early start. The best time to start an investment for child education is when he or she is young. This will help you build a substantial corpus later on, because of the power of compounding.
The later you start investing, the more time and money it will take to acquire the money necessary to give your child a flying start. So, it’s important to not delay investment decisions for the best investment plan for child education.
Mutual funds are professionally managed investments that will help you take full advantage of time and your savings. There are several advantages of mutual funds as an investment vehicle.
- You can start small, and then increase the investment amounts as your income grows. For your child’s plan, you could begin with a SIP that is affordable, and then keep adding to this month after month.
- There are various types of mutual funds, depending on your time horizon and risk appetite, for a children investment plan. Debt funds will grow your money slowly and steadily, while equity funds carry higher risk but also the promise of higher returns. There are also combinations of the two, and you are sure to find one that is right for your needs.
- Mutual funds are professionally managed by fund managers who have expertise and experience in investment. They will not take foolhardy chances with your money. Also, because of a longer time frame, you need not worry about market volatility.
- There is flexibility in mutual fund investments. As the years pass, depending on your child’s ambitions, you could choose different types of funds that suit different objectives.
- Importantly, with the help of a qualified and experienced planner, you will get to know the best mutual funds for child education to invest in, depending on your goals. Such a planner will be your partner when it comes to choose the best SIP for child education and will keep counselling you over the years until your target has been met.
In this way, step by step and year after year, you will move closer to your goal of giving your child the best education possible.
How Sykes & Ray Equities Can Help
At Sykes & Ray Equities, we take pride in our approach of putting the client first.
As one of the pioneers in investment planning, with 30 years of rich experience, we firmly believe that investments need to be backed by an investment plan.
This means we'll first meet you to understand your plans for your child. Together, we'll assess your current resources, and the time frame to fulfil your child's dreams.
Only then will we suggest tried-and-tested plans. Investments that are recommended by our team of certified financial planners who act on the recommendation of our research desk.
It's this approach of always keeping the client's needs in mind that has made us a respected name in the business.
Get in touch today and discover how we can partner you in a rewarding future for your child.