Over the years, there is no doubt that there has been plenty of emphasis on the amount of money you had to save aside for your children. There are obvious methods you have to follow to ensure that you are securing their future and one of the most important methods is via a mutual fund. There are many things you have to save for with respect to your child’s future and the obvious two are marriage and education.
Many of us choose to invest in savings accounts as well as fixed deposits to accumulate over the years towards their needs but think about it, would it suffice? With the rising costs of education and inflation, it does seem impractical to invest in lower growth options as it would not grow to an amount big enough.
The simple and smart way to plan your child plans would be to invest in mutual funds. Looking at the growth rates, you can choose so many different kinds of industries and hence be able to choose the smartest sectors to invest in. Apart from this, you would be able to choose the funds based on the market cap and the kind of companies there are. So, you would be able to choose blue chip companies only so that you have only the best companies to choose from. There are many ways you can split your investments and make it divided across many different investment options. Without a doubt, it would help you across many folds of life as the incremental gain over a long period of time would be huge and hence you would be able to leverage any one of the investments for an urgent or planned need.
Education has become such a massive need today and it costs a lot of money thanks to the rising costs. Would you be able to afford this if it is not with the planned investments you make? It seems very unlikely. It would be very difficult to create an investment like that which would keep you safe from inflation otherwise. For example, a Rs 10 lakh education degree today could rise up to a cost of Rs 45 lakh degree in a period as minimal as 15 years. Imagine any investment being able to cover up your costs that have shot up in such a short period? Yes, mutual funds are the simplest and safest bet!