Kotak Assured Savings Plan
A plan that offer guaranteed returns and financial protection for your family.
Kotak Guaranteed Savings Plan
A plan that offers long term savings and insurance in one premium.
Our representative will get in touch with you at the earliest.
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Ref. No. KLI/22-23/E-BB/492
Planning for a child's financial security in the future is a difficult endeavour. Choose the best investment plans available today to provide your children a financial safety net.
Many parents believe that child investment plans are the need of today. Given the rate at which inflation is noting an upward trend, your child’s future and financial security need to have a dedicated investment made in their name. The best solution to securing your child’s future financially is to look for the best child investment plan as per your financial goals and futuristic plans for your child. Child investment plans come with added benefits and have additional support from the government and insurers.
This article will discuss the best child investment plans and focus on all the aspects of a children’s investment plan. Moreover, it will also run through the best investment plan for your child’s future and the best one-time investment plan for your children. Also, in India, some financial tools have added benefits for girl children, specifically dedicated to empowering them financially. Thus, we will also take a brief look at the best investment plan for girl child in India.
The financial market, specifically in the case of insurance and investment policies, is highly saturated, and you will get a long list of options to pick from. And this vivid availability makes it very difficult for the parent to choose the correct and the best child investment plan.
Here is a list of child investment plans that might cater the best to your child’s needs:
Unit Linked Insurance Plans are a great investment option for your children, especially for girls, as they yield higher returns. ULIPs are financial plans that offer both the security of insurance and the opportunity for investment in the markets. In addition to this, they offer triple benefits as a child investment plan.
SIPs are mutual fund schemes that serve as one of the best child investment plans. In SIPs, the bank invests the amounts in market funds like debts, equities, or hybrid funds, which allows them to grow the income to a large extent. SIPs are a great choice for parents as the best one-time investment plan for children as they ensure a better return on investment. However, SIPs are market-linked financial products that are influenced by market fluctuations and performance.
SSY or Sukanya Samriddhi Yojana is a savings scheme available for girl children in India. Being a government scheme, it is highly reliable and preferred by many as the best investment plan for girl child in India. As a parent, you can open this scheme in the name of your daughter in the bank and yield a good interest rate of approximately 7% to 8%, subject to changes. The account will mature once the girl turns 21 years old. The minimum investment amount for this scheme is ₹1000/- and the maximum is ₹1.5 lacs.
Parents prefer this option as the best investment plan for their child’s future because some of the debt mutual funds offer better returns than simple bank deposits. Additionally, they are more tax-efficient, making them a much better choice. You can opt for Debt Funds if you are looking for a long-term investment goal to support your child’s future.
In the list of best child investment plans, PPF is a key player as a long-term investment that is highly secure. In PPF, funds are locked in for 15 years, and you can invest a minimum of ₹500 to ₹1.5 lacs per annum. PPF, on average, generates returns at a rate of interest ranging from 8% or above. You can open PPF accounts at banks and post offices.
When the markets are erratic and against equity, gold always serves as the ideal hedge. In the form of gold mutual funds, ETFs, or E-Gold, parents invest in gold. To lessen the risk involved with gold storage in physical form, experts advise against investing in it.
Gold is a reliable kind of investment, especially over a long period of time, and it fights the forces of inflation. Additionally, it has a high degree of liquidity and can be usefully cashed in for a child’s future financial needs.
Deposits made to equity mutual funds rank highly in the Children’s Investment Plan. The two main justifications for the same are the availability of investment options and the longer time horizon of 10-15 years. Equity funds have historically produced annual returns of between 12% and 15%.
Recurring deposits are a good option for parents seeking a low-risk investment strategy for the future of their children because interest rates are at an all-time high. You can create future plans for your child by locking the RD. Both banks and post offices provide recurring deposits in India. For instance, after ten years, a monthly investment of ₹1000 can yield ₹2 Lakhs. On the official website of the Indian Post Office, there is a tool you can use to check the potential returns on your monthly investment.
As child investment plans go, this is a good way to collect a corpus without the risk involved
It is highly advised that parents understand the options mentioned above before diving deeper into and selecting one of them. Once you have selected the type of child investment plan, you should pick a policy based on the premium amount and features.
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Ref. No. KLI/22-23/E-BB/521
