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Here Is How To Financially Secure Your Child’s Future

Adhil Shetty
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Q. Which is the best future investment plan for a girl child? Gaurav Nagpal

A. The investment options suggested are valid for either of your children, be it a girl or boy. You need investment plans to achieve some of the major milestones for your children’s future, from their schooling, higher education, career, to marriage.

However, since we are looking at selecting investment instrument specific to girl child, I would suggest considering current age of the girl child, your income, and risk appetite. Some attractive investment options could be:

  • Invest in mutual fund equity SIP: While investing in equity fund for long-term in SIP mode, you get sufficient time for Rupee cost averaging and reduce the volatility risk. Diversify investment across different mutual fund companies and in different type of equity schemes.
  • Invest in Sukanya Samridhi Scheme (SSS): it also gives you tax benefit u/s 80C up to prescribed limit.
  • For short-term goals, you can invest in Bank FD/RD and debt mutual fund
  • Invest in SGB Gold for long-term: it’ll give you interest benefit and LTCG on redemption is exempt from tax as well
  • Open a Public Provident Fund Account for your daughter: Since this comes with a lock-in period of 15 years, this would help you build a huge corpus in the long run that can be used for her higher education, etc. You can invest upto Rs. 1.5 lakh in a financial year and can also enjoy tax benefits under Section 80C.

Depending on your risk appetite and size of fund required to achieve a goal you can increase or decrease exposure while investing in different asset class.

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