Investment plans investing in your child’s education is a critical financial choice for many parents. Here are a few popular investment strategies to cover the cost of education in the future.
New Delhi: Investment plans: Right now, with the majority of parents finding it difficult to pay the high-school fees and uniforms, and the cost of textbooks. The annual rise in school fees increases the burden on the budget, and the growing cost of college and education expenses just makes it more difficult.
To ensure a more secure educational future for your kid, you need to begin preparing in the early stages by choosing options that will yield more returns over the long term. We’ve provided some investment strategies that can help you cover the cost of education for your child.
You can pick one that suits your needs and budget.
1. Child ULIP
To pay for the cost of children’s education, you can invest in the Child ULIP (Unit-linked Insurance Plan). This plan allows for disciplined investing as well as a high level of insurance coverage and the advantages that the stock market offers. It is a Child Education Plan (ULIP) is a mature plan that expires when a child turns 18, and the amount guaranteed is distributed to the child following the death of their parent or legal guardian.
2. Endowment Plan
With this type planann steady returns are guaranteed with the guarantee amount through bonuses. This kind of plan offers guaranteed returns and life insurance protection. These plans typically provide four that equal 25percent of the amount that is guaranteed, along with the appropriate bonus once the child reaches 18 years old.
As with endowment plans as well they typically have regular returns periodically. They are frequently referred to as a good option for lengthy time periods, like more than 10 years.
3. Sukanya Samriddhi Yojana
With the scheme, you will be able to invest through opening a new account on behalf of your girl child who is less than 10 years old. You can create an account under the name of your girl for as little as the amount of Rs 250. Tax exemption is available when you invest a maximum of the amount of 1.5 lakh during a financial year. The scheme is currently receiving interest at a rate of 8.50 percent.
4. Making investments through SIP
When you invest in mutual funds via SIP, you will be able to build up a substantial amount to fund your kid. You can reap huge returns over the long run when you choose small or mid-cap stocks.
What is the best plan?
- Kind of Insurance deciding the right option for a child’s insurance, parents must first consider which plan they prefer: either an insurance policy, a school policy, or a mix of both. These plans provide financial security to the child, specifically when it comes to parents passing away.
- Total Coverage. It is contingent upon what kind of education the child is planning to receive. It is important to take into consideration things like tuition costs, inflation, and the cost of living.
- Premium to be paid The premium is an essential element of the plan since it’s dependent on the income of parents. It is recommended to pick an option that’s within your budget and does not require you to spend more than your budget.
