Children’s Day: Want to start investing for your kid? 3 factors you must keep in mind

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The youth represents the future, deserving proper care and guidance. In our contemporary society, where even education carries a price tag amid materialism, it is prudent to provide them with gifts that ensure their long-term well-being. As you prepare to commemorate Children’s Day on November 14 this year, aim to create lasting memories for the children by securing a better future for them. It is your responsibility to guarantee a secure future for your children, making it crucial to provide them with the essential financial foundation or a supportive system to help them progress in life.

Choosing the optimal investment plan for your children’s future can be a challenging decision, given the multitude of options available. Instead of solely seeking the best child investment scheme, it is advisable to diversify across various investment options. Diversification serves as a risk mitigation strategy; if one investment underperforms, the others may excel, helping to counterbalance potential losses. When selecting investment options for children, it is crucial to take into account the following factors:

The duration of your investment, known as the investment horizon, stands as a pivotal consideration when selecting options for a child's investment. With a lengthy investment horizon equal to or exceeding a decade, you can comfortably embrace higher risk by investing in equity funds. Historically, equity markets have demonstrated superior performance compared to debt markets over extended periods. On the contrary, if your investment horizon is short, less than five years, a more conservative approach is necessary. Opting for debt funds or liquid funds becomes prudent, as a shorter timeframe leaves limited room to navigate