What's Better for Your Child's Education? Child Plans or Mutual Funds?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

What's Better for Your Child's Education? Child Plans or Mutual Funds?

What's Better for Your Child's Education? Child Plans or Mutual Funds?
  • 27th Apr 2022 |
  • 2,534

It is critical to plan for your child’s future in today’s society when inflation is high. Since education prices are rising at an alarming rate, you should invest in the best child plan in mutual funds to help your child pursue their aspirations. There are several investment options to select from when it comes to saving for various financial goals. Investment plans, such as Unit Linked Insurance Plans (ULIPs) and General Savings Plans, are examples of such alternatives.

When it comes to putting money aside every month for your child’s schooling, or other needs, you have two options: child plans or mutual funds. It’s understandable if you’re unsure which one will benefit you the most.

A child plan is usually superior to a mutual fund when it comes to saving for your child’s future. The performance of mutual funds is entirely dependent on the stock market; if the stock market declines, so does the fund’s performance, and your investment in it suffers a considerable loss.

Child insurance programs urge you to save diligently while also providing coverage for your child in unavoidable circumstances. Because of the following reasons, a child’s insurance plan is the ideal safety net for your child:

  • Helps Meet Your Children’s Education Cost

In India, the cost of general education has increased fourfold. This means that by the time your child reaches the age for college entrance, the cost of higher education will have skyrocketed. Regular contributions to a child plan in mutual funds can assist you in amassing the finances required to give your children a great education.

  • Covers the Costs of Medical Treatments for Your Children

Healthcare expenses are rising at twice the pace of overall retail inflation. As a result, it’s critical to prepare for unanticipated health issues. In addition, the proceeds from your child plan insurance may be used to cover treatment costs, allowing you to offer necessary medical support to your child in the event of a medical emergency.

  • Provides Tax Benefits

The premiums you pay for your kid insurance policy can be deducted from your taxable income up to ₹1.5 lakhs under Section 80C of the Income Tax Act, 1961. The returns are also tax-free if the policy meets the requirements of section 10 of the Internal Revenue Code (10D).

  • Offers Premium Waiver Benefit

The child plan in mutual funds continues even if the policyholder dies during the policy term. The insurance company waives all remaining premiums. In a parent’s absence, the child does not have to suffer.

When your child is old enough to go to college, they will ideally have a sizable saving account set aside to pursue their interests, attend a university of their choice, and study in the place of their choice. Choose a solid child plan in mutual funds to give your child the secure financial future they deserve. In this manner, even if you cannot care for your child, they will still be fully protected.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Asset Allocations in ULIP - Know the Top Benefits

How to Manage Your Portfolio Like a Professional?

Building wealth through regular investing

ULIP Benefits You Can Avail from Early Investing

Which is a Better Investment - Mutual Funds Or ULIP?

How To Diversify Portfolio In 2022?

What are the Best Investment Options for Students in India?

Endowment Plan vs Fixed Deposit?

ULIP as an Investment for Your Child

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are the Best Investment Options For Females?

How to Plan Your Child's Education - A Step by Step Guide

Why ULIP is Better Investment for Long-Term Wealth Creation?

What are the Best Short-Term Investment Plans with High Returns?

How to Fulfil Your Financial Goals in the Next 10 Years?

What are the Best Investment Options for Young Adults?

Safe Investment Options with High Returns for FY 2018-19

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Investment Options for NRIs in India

Why Should Parents Invest in Endowment Plan?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

What is ULIP Renewal?

Learn About Safe Investments with High Returns in India

How Does an Endowment Plan Work?

What are Mutual Funds?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

How is Compoud Annual Growth Rate (CAGR) Calculated in ULIP?

Receiving regular payouts at various stages of life

Do You Know the Difference Between Savings and Investment?

Savings Plan for Grandchildren

Why Should You Invest in Term Insurance And ULIP?

Learn About Safe Investments with High Returns in India

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Planning Financial Goals and Objectives of Financial Planning

ULIP vs FD - Which is Better and Why?

Investments Options to Buy a house in India

Creating a second source of income with life insurance

Is This The Right Time To Invest In ULIP? Why or Why Not?

4 Benefits of ULIP Fund-Switching Feature

Successful Financial Planning for Urban Women

How to Cancel ULIP Policy?

Top 5 Investment Options in 2022 for Healthy Returns

Basics of Guaranteed Savings Plan

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Complete Savings Plan for Low Income Earners

Why Do You Need A ULIP Plan - All You Need To Know

Who Should Invest in Savings Plan?

How Do One-Time Investment Plans Work?

Best One-Time Investment Plans in India

Importance of Portfolio Management

Difference Between Passive and Active Investing

Top 5 Principles That Need to be Followed for Wealth Creation

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Are Gains from ULIP Sale Taxable?

Short Term and Long Term ULIP Plans for Wealth Creation

Best Investment Options to Cover Your Child's Education

What is a Savings Plan and What are is Benefits?

What are Deferred Savings Plans?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

What are the Best Investment Options for Beginners or Amateur Investors in India?

What are Some of the Safest Investment Options in India?

Are Money Back Policies Helpful? A Complete Guide

How to Manage Inheritance Money?

Customising investments to manage your wealth

Early Investing and the Power of Compounding

4 Important Tips to Maximize Gains with ULIP Investments

What is the Importance of Saving Money?

How to Make Your Financial Portfolio?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Can ULIP Help in Achieving Short-Term Financial Goals?

Best Investment Options in India in 2022

3 Tips to Buy Guaranteed Savings Plan

Top 6 Investment Plans Available in India

Things to Know Before Buying an Endowment Plan

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Top 10 Investment Strategies to Create Wealth

Best Long-Term Savings Plans in India in 2022

Difference Between Guaranteed Savings Plan and ULIP

Benefits of ULIP as a Child Insurance Plan

Factors Affecting Stock Markets

ULIP Plan as a Gift

How to Increase Net Worth Along with Family Protection

Different Types of Endowment Plans

What are Tax-Deferred Savings Plans?

How to Plan Savings from Salary?

How Much Wealth Can You Create from ULIP in 10 years?

How to Plan your Investment to Achieve Periodic Financial Goals?

How To Track ULIP Performance?

Planning for Your Child's Higher Education? Explore These Investment Options

What is better - Guaranteed Savings Plan or Fixed Deposit?

How to Start Saving Money in 10 Simple Ways?