How To Plan Investment For Your Children’s Future?
Follow these simple steps.
Find out what they cost now
The costs of various higher education options vary across disciplines and institutions. Get an idea of the range of costs. For instance, tuition fee for undergraduate medical studies in private medical colleges can be as much as say Rs 55 lakh.
Estimate costs in the future
Cost of higher studies, especially the technical education in a metro cities like Mumbai and Delhi, has almost doubled in seven years in the period up to 2017. If the costs go up at the same rate, in next 15 years, expect the costs to increase by four times i.e. a course costing Rs 25 lakh to rise to Rs 1 crore.
You child saves regularly in her piggy bank. You too need to do the same for her future. And sooner you start, the better, since you get to save more and get more time for your money to grow more.
Invest in high growth instruments
Over long periods, and with such large requirements, your money needs to grow at faster pace.Equity mutual funds are one of the best investment option to make your money grow.
The best way to do this is through investments in equities with systematic investment plans (SIPs) of equity mutual funds. They help you make small, but regular investments, in high growth equities.