The market is flooded with so many investment options for children that it becomes little difficult to choose the right plan that meets your requirement. Always opt for investment options you are comfortable with. If you feel market is too risky for you go for a plan which is a balance of both equity and debt. Here is a list of questions you should keep in mind before going ahead with the investment option.
What is the purpose of the investment?
Typically parents investment in the children plans for two purpose education or marriage. Define your purpose of investment. This will help you opt for a plan that gives you better returns over a period of time. For both the types of investment decide the amount keeping in mind the future cost.
Is it a long term or short term investment?
This is very important from investment point of view. For parents who start early it could be long term investment for both education and marriage. But for parents who invest in these plans a little late do keep in mind when will you need the funds. Choose a plan that offers you good returns for your chosen term.
When should you start investing?
The early you start the better. It helps you build a bigger corpus for your future needs. The other advantage of starting early is that the funds are available to you long before their actual use. This way you can keep the funds aside till their use or invest for short term.
Are child insurance plan good for investment?
Yes these plans are good investment option. First they regularize your savings and they also take care of your investment in the unfortunate incident of untimely death of the earning parent. All the insurance companies offer protection of some kind or the other to take care of your investment. Before you choose the plan study its features in detail. All the plans share their past performance which again will help you take a final call on your investment.
Which ever plan you opt for, read, research and ask questions. Remember it’s your money and your investment to secure the future of your child.
