Monthly SIPs, gift fund: Here's Edelweiss' Radhika Gupta's guide to investment plans for children
Mutual Funds: Can small SIPs help you save enough for children's education? Gupta took to social media platform ‘X’ and listed the following plans:
‘’On popular request, some quick thoughts on investing for a child,'' said Gupta. These are as follows: 1. Get the docs done - birth certificate, Aadhar, PAN and then bank account.
Actually very easy to do for a minor. 2. Try to find a goal - higher education is one - to save for.
Break it down into the number of years you have to figure out an investment amount. 3. Do monthly SIPs.
2-3 funds work. Can use a large / mid index fund for broad market exposure, mid and small cap funds to add risk, and an international fund if you are thinking study abroad to manage currency. ,94 those who asked you can do all this without a children’s specific fund like gift etc.
4. Review this periodically as goals change, make it more conservative as you get closer to the goal. Involve the child in the process as they are old enough to understand.
5. This isn’t a perfect process and you can easily create your own. But it’s enough to start.
Finally encourage those who gift to gift units or SIPs to kids. I know the pain of having three ball pools and four strollers as gifts and storing them in a Mumbai home. Financial gifts are productive and take less space.Milestone Alert!
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