Savings plan for child
Dear Team,
One of our colleagues lost his life due to Covid recently. He has a 3 year old daughter. In addition to what the company is providing for the family, some of us have pooled together some money for the child's higher education, which we want to invest for 15 years to provide for her higher education.
I have looked at a number of endowment plans, child plans, market plans etc, but thoroughly confused.
Any suggestions would be helpful.
You have two options:
1 - Sukanya Samriddhi Account in either a bank or post office. Fixed interest scheme. No market risk. Long lock-in periods. Max 1.5L in a FY.
2- Children's Gift Mutual Fund. Way better returns. There is market risk though. Lock in period till 18yrs.
Do your research or ask a financial expert and make a decision.
P.S.- Since you are in an insurance site you may consider purchasing a long term health insurance for them (if they dont have yet) which will be very helpful.
Kudos
Dear Sharad,
Why don't you consider mutual funds if the time horizon is 15 years? Beshak is a platform for insurance so we'll not be able to comment on mutual funds but there are many good investment advisors who can help you with an optimum mutual fund strategy.
You can also look at platforms like ET Money, Paisabazaar, Groww, etc.
If her mother is working or starts to work at some stage, she should also seriously consider term insurance.
Two distinct advantages of mutual funds in this case -
My best wishes to the little girl & her family!
Asad Akbar