Long Term Investment Options for Child

As parents we have to focus on many aspects of life: work, home and family. Especially for new parents, the most important task at hand is that of planning their children’s future in a reliable and secure way. So in this blog let’s look at some long term investment plans that new parents can opt for their children from an early age.

Remember, earlier you start investing, higher are the returns in the long term.

Parents must carefully look at all the plans available, market risks, return on investments. Sitting down with a financial advisor helps in charting all the options available and choosing the best one. You should invest your money for your children’s education or other goals in a way that doesn’t depreciate their value over time.

Child insurance plans are a reliable way for many parents to insure that their children get money in case of the parent’s untimely death. The premiums are waived off in that case and the child gets a lump sum amount of money. Public Provident Funds or PPFs are also great investment option for parents as they can save on taxes due to rebates given by the indian govt. These funds can be used for higher education of the child.

Some individuals with a higher risk appetite can go for Stocks and ETFs as investment options, although risky, stocks give the highest payout over a long period of time. We need a good understanding of the market and more monitoring when it comes to stocks.

Another common long term investment option which is probably the most common is Fixed Deposits. FDs are a safe investment option which makes it a go-to for many people. Different times of maturity is provided and the investor can choose when they would like the payout - monthly, quarterly or yearly.

We hope this video helped you crack down a few effective investment options for your child. To speak about this at length, please don’t hesitate to contact us. For consultation and more information, contact Investoscope Financials!