help create a corpus for crucial stages in the child’s life
There are different child plans with various costs, time-frames, risks and returns associated with them. There may not be any one best investment plan suitable for all - choosing them wisely in terms of these factors is a vital part of your financial policy.
Investments are not exclusive instruments meant for the grown-ups. There are investment plans available for kids even if they never had any idea of the importance of earnings, savings and investments. These investment plans, popularly known as child plans, are meant to maximize the returns that children could get when they have grown up at different occasions in life. And it would be a good Policy to have some funds earmarked early in life to make the most of the best investment plan available for your child.
This tends to be one of the most popular investments when it comes to investing for kids. Let's take a look on different investment options available for child plans:
Of the two types of investments that you could make into child plans – Traditional Child Plans and Unit-linked Child Plans – the traditional investment plans have always been seen as one of the safer options that assure you of fixed benefits in the future. One of the common concerns of parents is to find the best investment plan that would meet the growing needs of child’s educational and other expenses. It would be a good idea to make investments in a policy that would squarely address the set of needs associated with investment plans.
The benefits of traditional child plans in terms of competing for the ‘best investment plan’ status are:
Child plans could also be in the form of a policy that provides insurance Coverage apart from their providing for investments that deliver reasonably high returns, as in the case of the Unit Linked Insurance Plans. Some of the advantages of ULIP are:
The disadvantages, however, include factors that are linked to market conditions – these are investment plans whose rates of returns are determined by the performance of the funds in the financial markets. Hence, it is arguable if they can be termed the ‘best investment plan’.
These are increasingly popular investment plans that combine the best of both worlds. Some of the striking features of mutual funds to contend for the title of the best investment plan are:
Choose your child plans carefully based on your goals, your family circumstances, your financial aspirations and the stage of life you are in, and you could reach your goals in style with time.