Every parent wants to provide a secure financial future for their child. For this, they have one option of investing in different investment options available in the market. This will help the child get the best education and choose the best career option. And the second option is to plan for unexpected emergencies and unforeseen expenditures in their child's life. Providing a secure future for the girl child is a responsibility of every parent. It is the best gift you can give her to get ahead in life.
Why is an Investment Plan for Your Girl Child Necessary?
In India, every parent needs a plan for future expenses for the girl child's education and career. Moreover, they have to save for their daughter wedding expenses. Because it is the primarily borne by the bride's parents. Apart from this, parents also need to plan and prepare for the unplanned travel, unexpected expenses, and emergencies. Subsequently, a great investment plan is important to secure the financial future of the girl child.
Where and How You Can Invest for Your Daughter?
There are many investment options available in India for Girl Child. Some of the best investment options for Girl Child in India:
Mutual Fund SIP is the best investment options available for the girl child in India. Parents who are looking for a higher return with low risk can go for MF SIP. Systematic Investment Plan (SIP) is the best way to invest in Mutual Funds. Through SIP, Parents can invest money periodically to create a corpus for their daughter. The money is invested in different Equity and Debt Mutual Fund Schemes. It is advisable by the Financial Advisor, the sooner you start your daughter's SIP, the higher the return. Usually, Mutual Fund investment is a long-term investment for a period of around 10 years.
There are several Child-specific Mutual Fund schemes available in the market. Where the money is invested in a mix of equity and debt MF Schemes. In these schemes, the returns are moderately high between 10-15%. Now, there are also tax-benefit Mutual Funds available in the market, which gives a good return. It is best to seek help from the Certified Financial Advisor and do some research before investing.
There are several insurance investment plans for the parents that give a lump sum pay-out to the child in the event of the parents’ sudden demise. In such a case, all the remaining premiums are denied if the policyholder expires. The insurance company will continue to invest the money for the child. The returns from investing this money are paid out to the child periodically so that the child’s upbringing and education are hassle-free. Before selecting an insurance plan, it is a good idea to do thorough market research and consult with an investment planner. This will help you choose an insurance plan that will provide for your child even if you are no longer around.
