Securing Children's Future with SIP Child Plan
The comfort provided by the SIP solution has made this investment option a popular style among investors. It is growing to be a base necessity for parents looking to secure the financial future of their children.
About SIP
- SIP stands for Systematic Investment Plans. It is an investment vehicle that serves as a comfortable entry point to mutual funds.
- Systematic Investment Plans are special because they do away with the need to invest through lump-sum amounts. People can participate in equity funds simply by investing small amounts, periodically.
- Most investors start here when they begin a path of financial security for their children. The SIP style of investing has made it an ideal choice for many investors looking to secure their future.
How SIP Child Plan Works?
- SIPs adhere to a predefined, 'systematic' plan of action. This plan is drawn up with the help of a financial advisor who charts the best sip for child in, based on a fixed investment budget.
- This fixed amount of money is debited from the investor's bank account at specific time intervals. The frequency of investment can be weekly, monthly, or even quarterly. The amount gets invested in a specified mutual fund.
- Each investment allocates a certain number of units to the investor. The number of units depends upon the fund's current Net Asset Value (NAV).
- With each successive investment, more units are added to the investor's account. This is how the value of the portfolio goes on increasing through time.
- Upon maturity, the returns would reflect the effects of compounding plus the benefits of rupee cost averaging. The investment tenure can be arranged to suit an investor's various needs: Child's education, marriage, house, etc.
Benefits of SIP Child Plan
Starting a SIP for a child can be very beneficial for securing their future. The returns can meet the growing expenses of higher education or any other dreams that they may want to fulfil.
Some of its attractive benefits are:
- Encouragement of disciplined investment
- Freeing the investors from market speculation
- Comfortable way to begin plan sip child
- Sizable returns owed to dollar-cost averaging and compound interests
- Flexibility to stop plans, decrease investment amount, and even renew its duration
SIP for Children
For parents, a child's need takes precedence over all others. Such needs often take the form of higher education, certificate courses, international trips, religious ceremonies, marriage functions, etc.
SIPs allow for the use of mutual funds as an instrument to finance such important events.
- Improper planning and insufficient funds can often downscale the options available for a child. SIPs help protect their interests by removing the uncertainty of meeting necessary expenses.
- The financial security provided by the returns serves as a strong foothold for when the child takes important decisions. It also allows parents to fund the seed money required to begin adult life.
- It protects the family from being affected by volatile inflation rates or from having to trade equity in high-risk market scenarios through lump sum figures.
- The flexibility to adjust investment amounts based on comfort levels allows them to continue building units until maturity.
SIPs enable the parents to help their child build the future of their dreams, just by systematically investing today.
Most important events of a child's life can be foreseen years before they happen. Such foresight allows parents to begin the financing process in a manner that leaves them with the most stress-free investment solution: A Systematic Investment Plan.
Our client-centric approach has cemented our 30 year legacy of being pioneering experts in this field. At SRE, all counselling is goal-based to implement our ideology: to have every investment backed by an investment plan, and oriented to what is right for you.