Child Education

While we all desire a better future for our child, education becomes a very vital aspect of our contribution to it. Education is critical for our child and therefore, we cannot let it be left to chance or keep it limited to our future capabilities alone. It is a key goal that needs a sound financial plan. Quality education comes at a significant cost and this cost is expected to increase rapidly over the next few years. Planning for your child’s educational expenses needs to be done at a very early stage in your child’s life.

Be prepared to fulfill your child’s dream

Today, children have innumerable career options. While they choose what do they want to become in the future, you want to do your best and ensure their dreams are fulfilled. Investing with a goal in mind will help in knowing the total outlay required in the given time-frame.

Take advantage of power of compounding

You can start investing with a small amount today and see it grow rapidly into a larger amount tomorrow. The earlier you start, the more the money multiplies. Over a period of time, the impact of this is massive. This is the magic of ‘Power of Compounding’

Aim to invest in right options

Being clear on goals and time frame will help you invest in mutual fund schemes best suited to your needs and risk appetite. Equity funds have the potential to wealth generation over long-term.  However, for short-term needs such as school fees, uniform expenses, medical etc., you can choose debt or money market funds. It is ideal when you prefer to preserve your investment and looking for more steady returns with low volatility and high liquidity.

Mutual funds are ideal investment options for children’s education planning because they will help you invest in the right asset mix to ensure the success of your goal. You should consult with your financial advisor, for a better returns and on time, as to how to go about investing in mutual funds for your children’s education.