As a responsible Parent, Guardian or well wisher, you are always willing to take steps today so that your little ones get to see a better tomorrow. Be it basic education, the most coveted foreign degree, a dream marriage, a diligent and loving parent desires to provide enough financial security for each milestone in a child's life. But have you thought how you would be able to fulfill these desires, given the huge increases in costs of education or marriage that are likely to occur with every passing year? A little bit of careful planning, regular saving and consistent investing today is what is required so that you can take care of these future needs without worrying too much. If you are looking for an investment today which would help you realize your children's dreams tomorrow, then investing in Mutual Funds perhaps the right choice for you.
It aims at helping parents, guardians and well wishers to save for growing children's needs.
Who should invest / Key Attributes
Investing in mutual funds can be tricky. Once you’ve decided between debt and equity, you have to choose between a systematic investment plan (SIP) or lump sum investment. While lump sum purchase of mutual funds seems attractive if you have a passion for tracking indices and funds, a SIP can earn more over time.
With a SIP, you invest a fixed amount regularly so it accumulates over a period of time. If you have a long-term goal, investing in an equity SIP will help your money compound over the years.
Here’s why a SIP can help you to achieve the most important life goals:
You’ll need time and compounding to fund your child’s future
The countdown to saving for your child’s future begins from the moment you learn you’re expecting. You will have at least 18 years to grow a corpus, so investing through an equity SIP gives you the advantage of growing a small fortune over a lengthy investment horizon.
With time on your side, not only does an equity SIP give you better returns, it also gives you the option to link the SIP to your child’s education milestones. You also get the twin advantage of averaging costs and compounding returns.
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