Investing For The Future

Investing in kids future

Like all ambitious parents, you want to give your baby the very best – right from the time she is born well into the future. But what most first-time parents do not realize is the financial obligation that comes attached with it. Beyond the diapers, baby cot, strollers and car seat, there will be other unforeseen expenses – like day care, private lessons, escalating school and college tuition fees – which can put a huge dent in your budget. Which is why, it is imperative to save for your child’s future. And if you’re a responsible parent, you would start well in advance and have your financial plan in place.


What Is The Right Time?

Starting early gives you an edge and it’s simple to see why. Your investment not only gets that much more time to grow, but you’ll also realize that with accumulating interest, your returns will also be substantial. And of course, it ensures you realize your long-term financial goals with no short falls in your targeted amounts. So don’t wait for your baby to grow into a toddler or get into pre-school. Get started early to maximize your returns.

Where to invest? Thankfully there are a plethora of investment options available today – and you have a wide range to choose from. But since your objective is to build wealth, it is important to choose an investment that has the potential to grow and give you good returns. But before that, it is essential to martial your financials so that you could factor in the time period where your money would be locked.

Short-Term Savings Options

For starters, the basic savings accounts scheme offered by your neighbourhood bank is a safe, sure way of saving money, but however, the returns are not very significant. And because of their easy access, they provide temptation for the saver.

The recurring deposit is another great saving option, that encourages disciplined savings month on month without pinching your pockets. But here again, unless the investment is high and over a long-period of time, the earnings are less. Nevertheless, it is a great way to start saving.

The fixed deposit scheme is another short-term saving option you could consider. It offers a guaranteed rate of interest for a fixed period. You could choose the length of time that your money is on deposit and accordingly it will earn you interest. The longer the term, the higher the yield will be.

Long-Term Savings Options

Mutual funds are an excellent investment option to grow your money quickly and earn rich returns. Besides offering diversification, they also allow flexibility. While investing in equities, liquidity is an important factor that needs to be taken into consideration while working out the strategy. The open-ended mutual funds will ensure that the money is available to you as and when you require it, but the key is to make the money grow at a reasonable rate.

If you wish to invest in an equity fund on a regular basis, the Systematic Investment Plan (SIP) is one of the best options available. It allows you to invest a fixed amount every month, and also allows you to take advantage of the stock market.


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