Children’s Day: Today is children’s day. On this occasion, financial planning can be started keeping in mind the future needs of the child. Today there are many investment options in the market which can be started for children or in their name. In all these options, which option to choose, it will depend on what needs of the children you are investing for. This decision depends on how much amount will be needed in addition to future needs like children’s education or marriage.
FD (Fixed Deposits)
These are common options for investment. It is also popular. The biggest reason for this is that it can be easily withdrawn when needed. The child’s parents or legal guardian can get FD for a minimum of Rs 1000. Interest will be given on FD at the rate of about 6 percent per annum. Depending on the banks, the interest may be low or high, so before investing, know about the FD interest rates in all banks.
We have a tradition of gold transactions at the time of marriage here. However, at what height will the price of gold be in the next 15-20 years, it is difficult to guess. For this, you can prepare from now that a small quantity is purchased and in future, it will be a big amount together. You can opt for Gold ETF on this children’s day. It is a better investment option and in the future when children need a large amount of money, then they can fulfill it with gold. It is an exchange-traded fund whose value is equal to physical gold.
Sukanya Samridhi Yojana (SSY)
Under this scheme, parents or legal guardians can open an account in the name of a girl from zero to 10 years of age. Right now it is getting 7.6 percent interest. In Sukanya Samriddhi Yojana, you can deposit from Rs 250 to Rs 1.5 lakh annually. Income tax is also available under Section 80C of Income Tax on investments made under this scheme.
Under this scheme, a fixed amount has to be deposited annually for 15 years after opening the account. The investment in this is for 15 years but its maturity period is 21 years or 18 years till its marriage. However, the investment is only for 15 years and in the period between 15 years to 21 years, the money will continue to be added according to the interest rate at that time.
PPF is also a better option for the better future of children. It can be opened by parents or legal guardians in the name of children. Right now it is getting 7.1 percent interest. Its maturity period is 15 years and a maximum investment of Rs 1.5 lakh can be made in it. The biggest advantage of investing in it is that it has a lock-in period of 15 years and can be extended for 5 years. In this way, the money needs are fulfilled at the time of the great need of the child like education or marriage.
Mutual Funds / SIP
If you want, you can buy mutual funds for your child. Apart from this, SIP can also be done. You can get the best SIP plan by taking help from any financial advisor. In the long term, they get excellent returns and in the future, the great need of the child can be fulfilled.