For some, accumulating a corpus for their children may begin the moment a child is born. Yes! The highly competitive and costly world of academics and extracurricular activities alike gives sleepless nights to parents. Besides, higher education in a foreign university has become a common trend. To maximize your investment returns, you need to build a strong investment portfolio by choosing the right investment plan for your child’s future.
Here are three smart ways to create a sizeable corpus for your child's education:
This scheme is designed by Life Insurance Corporation (LIC) to meet the growing expenses of children’s education. It provides the risk cover on the life of a child during not only the policy terms but also extended term. In this plan, some of the money is paid back through installments at regular intervals. However, most of the amount comes once the child becomes 18 years of age. The scheme is highly flexible for premium payment as it be paid at the yearly, half-yearly, quarterly, or monthly basis.
Fixed deposit gives enough time for parents to save for their children as it can start as early as one year old. FD does not require you to contribute every few months or years, unlike other schemes; invest in it only once, for a long-term basis. You can start the FD with a small amount and earn a good return as FD interest rates are higher compared to other investment plans. Some banks and financial companies such as Bajaj Finance offer a higher rate of interest on FD, which can benefit you even more.
This is another excellent scheme to invest in, to build a sufficient corpus for your daughter’s future educational needs. However, it is only for the girl child, to encourage their birth and education. The account can be opened after the birth of the girl child till ten years of age. You can invest a minimum amount Rs. 1000 to Rs. 1.5 lac in a year. You can deposit the money for 14 years. However, the maturity period of this scheme is 21 years, so the final amount will be made available only after maturity. Although it keeps fluctuating, the rate of interest offered in this plan is much higher than other investments.
Secure your child’s future with smart investment schemes, today!