People invest for a variety of reasons, such as tax savings, retirement benefits, or any other contingent duty, yet they frequently fail to save for their children. The most significant and commonly acknowledged financial saying is that you should start investing as soon as possible in order to maximize your long-term gains. As a result, if you start investing for your child’s future now, you may be able to cover all of his or her future fees and obligations.
Here is a list of investing possibilities to think over before deciding to invest in your children’s future.
1. Investment In The National Savings Certificate
The National Savings Certificate is a savings bond program that encourages investors, primarily those with low to moderate incomes, to participate while benefiting from Section 80C tax breaks.
2. Investment In Public Provident Funds
If you invest in a fund with a lock-in duration of 15 years, your public provident fund investment might be your finest investment. You should also bear in mind that you must invest a minimum of Rs. 1 lakh every year in order to receive a reasonable return on your investment.
3. Investment in Recurring and Fixed Deposit
Investing in RDs and FDs is one of the less hazardous investments you may start for your children. Although they provide a lower return than any market-linked investment, they are likely the greatest investments for your children since they are essentially risk-free.
4. Investment In Sovereign Gold Bonds (SGB)
Gold has long been considered the finest protection against turbulent and anti-equity markets. Experts advise against investing in real gold to avoid the risks connected with gold storage. They advocate instead investing in gold exchange-traded funds, or E-Gold.
5. Sukanya Samriddhi Scheme Investment
Sukanya Samriddhi is a government effort in India that encourages parents to save money for their daughters. You may open the account at any post office or bank until your daughter reaches the age of ten. The annual minimum and maximum deposits for this program are Rs. 1,000 and Rs. 1.5 lakh, respectively.
