New Delhi: People make investments for varied reasons, including tax savings, retirement benefits, or any other contingent liability, but they often forget to invest for their children. The most important and widely accepted financial maxim is that you should begin investing as soon as possible to get maximum returns in the long run. And that’s why, if you begin investing for your child’s future now, you may secure all of his or her future costs and obligations.
Here is a list of investment options that you should consider before making a decision to invest for the future of your children.
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Investment In Sukanya Samriddhi Scheme:
Sukanya Samriddhi, a government initiative in India, encourages parents to save money for their daughters. Up to the time your daughter becomes 10 years old, you can open the account at any post offices or banks. The minimum and maximum deposits for this scheme each year are Rs. 1,000 and Rs. 1.5 lakh.
Investment In Sovereign Gold Bonds (SGB):
Gold has always been the best hedge against volatile and anti-equity markets. To eliminate the danger associated with gold storage in physical form, experts advise against investing in actual gold. Instead, they recommend investing in gold exchange-traded funds, or E-Gold.
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Investment In Recurring and Fixed Deposits:
One of the less risky investments that you can start for your children are investments in RDs and FDs. Although they give you a lesser return than any market-linked investment, since they are almost risk-free, they are likely the best investments for your children.
Investment In PPF:
The investment that you make in your public provident fund can be your best investment if you invest in a fund that has a lock-in period of 15 years. And, you should also keep in mind that you must invest a minimum of Rs. 1 lakh per annum to get a fair return on your investment.
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Investment In The National Savings Certificate:
A savings bond scheme called the National Savings Certificate encourages investors, mainly those with low to moderate incomes, to invest while taking advantage of Section 80C tax.
