This month we will appeal to all the parents and to be parents in this world .Yes we are talking about your child’s future.
- Why is it important?
In a child’s life there are times when he needs a hand from his parents it starts with all the small things like school admissions, college admissions and grows to bigger things where even after being an adult he might need a helping hand like buying a house or marriage.
There are times when parents are too pre occupied to focus on these issues. The time is today…
Why one might ask , well let’s take education.
An MBA course, which at present costs around Rs 520,000 (including lodging expenses), will cost Rs 2,172,169 after 15 years. To accumulate this amount, you have to invest around Rs 93,548 at 6% return p.a. or Rs 63,404 at 10% return p.a.
- What should one take care while investing for children
- Have a distinct objective (amount of investment, period & expected return)
- Don’t dip in to investments for your child.
- Focus on the investment vehicles and their pros and cons.
For points 1 & 3 a financial planner can help but the one part where the parents have to stay disciplined is to not dip in the child’s portfolio. There are investment vehicles like FD’s which offer a lock in but these vehicles yield comparatively lower returns .You invest like a normal investor & focus on maxmising returns and yet control the urge to dip in to the investments.
A final tip switch to low risk instruments as the time to reap your investments.
Presha Investments wishes all the children a financially secure future.
Happy Investing
