As November 14 is considered as Children’s day, in the following article we will be discussing some of the best advises for your child’s future.
We all are somehow worried about our children’s education, some specific career for the toddler and also marriage. It is importunate that you should plan investments for your child from starting for their future’s security.
It must be noted that early investment for future security will provide a frame for your child.
Let us take account of some of the best investment plans for your children:
- Public Provident Fund (PPF): The time limit for this scheme is 15 years. Current interest rate is 7.9% as compared to the interest rate of bank i.e. 7%. The interest that will be earned is going to be tax-free. Not only this, but you also get a tax rebate of up to Rs. 1.5 Lakh under section 80C of the Income Tax Act. Though span of this scheme is high it in return help building frame for your child’s future.
- Sukanya Smariddhi Account: This scheme is only the girl child. So if u have a girl child and you are planning things for her future, then this is the plan you need to look for. The interest rate is 8.4% which is again tax-free. This scheme will also provide tax benefit offered under section 80C of the income tax act. The span of this scheme will also be longer. The only issue with this scheme is that there could be the revision in interest rates from time to time.
- Saving Gold: Another good option for investing is Gold not physical but ETF’s. You can invest a certain amount each month let us say for a decade will earn you good and sizable benefits. It has been seen that gold has shown better returns as compared to other assets for the longer period of time. The only disadvantage is that you have to pay capital gains tax when you sell.
- Equity Mutual Funds: Equity mutual funds have proved its record when it comes to returns for the longer period. So if you have plans to invest for your child’s career, education in abroad or maybe marriage then this is the plan for you. They tend to be more tax efficient as compare to other investments.
- Debt Mutual Funds: If you are looking for an option better than the bank, then let us clarify that some debt mutual funds offer better returns. While investing in debt mutual funds you need professional advice as they are a little volatile. If you are planning for this plan opt for heavy title towards AAA securities.
- Combination of Bank Deposit and Company Deposit: A combination of company FDs and bank FDs can also be an option if you are keeping safety and security of your child in mind. It can be done for small tenure as well.
Another deposit safe under 5-year tenure is deposits of Deutsche Bank, which offers the interest rate of 7.75% per annum. It is advisable not to opt for these plans as they offer low-interest rate as compare to other investment plans when it comes to securing your child’s future.
Though we have tried to enlighten the best investment plans if you need professional guidance, you are always welcome at Centrik. We have been providing solutions for a couple of years with our domain experts for client’s satisfaction.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.