The most valuable investment we can make is in our children's education.
Investing's for your Child's Future will be one of the most important Financial Decisions you can make as a parent. The right investment plan can help secure your child's future and meet major goals like higher education, marriage, travelling buying a house etc. Here are some of the best child investment plans and schemes available in India:
Sukanya Samriddhi Yojana
Launched by the Government of India, this is one of the most popular girl child investment schemes. It offers an interest rate of 7.6% and tax benefits under Section 80C. The account can be opened with just Rs 250 initially and Rs 100 per month thereafter.
Child ULIPs
Unit Linked Insurance Plans meant specifically for children offer life insurance coverage along with investment in equity and debt. The premium paid is eligible for tax deduction under Section 80C. On the time of maturity, the child gets the fund value tax-free under Section 10(10D).
Child Pension Plans
Offered by many mutual funds and insurance companies, these allow investing a lump sum amount which will be paid out as regular income to the child after adulthood. Some plans also return the principal at maturity.
Child Mutual Fund Schemes
Mutual funds like ICICI Prudential Child Care Fund and UTI Children's Career Balanced Plan allow long term growth of capital for a child's future needs. They invest across equity and debt instruments based on the child's age.
Bank Fixed Deposits
Opening a fixed deposit in your child's name and marking yourself as the guardian is a safe way to build a corpus. Many banks offer higher interest rates on children's FDs. The interest income is taxable based on your income tax slab.
The best plan for your child would depend on your investment horizon, risk capacity and specific financial goals. It's ideal to start early so that the power of compounding can do its magic. and will getting massive return from your investment .