5 Good Child Investment Plans That Parents Should Invest In

If you are looking at a 10-15 year investment plan for your child, there are plenty of options. It is best to start investing very early for your child. This ensures that your returns can get compounded and you reap the benefits of compounding.

While there are many ULIPs, that offer you good protection, the returns are not good. The one benefit that you get is insurance, in case anything were to happen to the earning parent, it could cover the child's education etc. But, a better option would be to take a term insurance plan, which would give you insurance and a good investment plan as mentioned below. This is a much better option, than the traditional ULIPs.

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Conclusion

An important thing to note in some of the recommendations listed above is that in the case of the first too, that is PPF and Sukanya Samriddhi the returns are almost assured and hence the investment are safe. The other three instruments that are recommended pose some degree of risk, especially equity mutual funds. Gold and GSEC Fund are comparatively less risky. It is therefore very important to exercise some degree of caution before investing. Investors who are risk averse should go with the PPF and Sunkanya Samriddhi. As mentioned earlier, we wish to emphasize once again, that investing for children should be a long-term exercise and is more of a patient game. it's important also to take a term insurance, to secure the future of your loved ones.