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Best Investment Plans for Your Children Future in 2024

  


Introduction

Welcome to our blog! In today's post, we will discuss the best investment plans for securing your child's future. Planning for your child's education and wedding can be a daunting task, but with the right investment strategies, you can ensure their financial security. We will explore three investment options that will help you achieve your financial goals and provide a bright future for your child.

 

Equity Linked Saving Scheme (ELSS)

The first investment plan we recommend is the Equity Linked Saving Scheme or ELSS. ELSS is a type of mutual fund that allows you to start investing with as little as ₹500 or even less. The best part about investing in ELSS is the potential for high returns in the long term. The power of compounding kicks in after 8 years, which is perfect if your child is younger than 10 years old. Additionally, ELSS offers a tax benefit of up to ₹1,00,000 per year, making it an attractive investment option.

 

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a popular and safe investment plan specifically designed for girls. It offers guaranteed returns and tax-free fixed annual interest of approximately 8.2%. The lock-in period for this scheme is 21 years, which means that the funds will be available to your daughter when she turns 21. However, if your daughter is already above 18 years old and you require funds for higher education or her wedding, partial withdrawals are allowed. This plan is highly recommended for those who want a risk-free option for their daughters.

 

Public Provident Fund (PPF)

Public Provident Fund or PPF is a long-term investment plan that offers fixed annual interest of approximately 7.1%. You can start investing in PPF with a minimum of ₹500 or more. The lock-in period for PPF is 15 years, making it a suitable option for those who have a vision for India's economy and believe in long-term investments. PPF also provides a tax benefit and a maturity corpus of up to ₹69 lakhs after 15 years. This plan is suitable for both boys and girls, regardless of their age.

 

 

Conclusion

Choosing the right investment plan for your child's future is crucial for their financial well-being. Whether you have a girl or a boy, these three investment options provide excellent opportunities to secure their future. ELSS, Sukanya Samriddhi Yojana, and PPF offer unique benefits and returns suited to your financial goals. Remember to consider your risk appetite, the duration of the investment, and the tax benefits before making a decision. We hope this blog post has provided valuable insights into planning for your child's future. Share this information with your loved ones and stay tuned for more informative videos like this. Thank you for reading!

Disclaimer: Mutual Fund is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

 

 

 



Frequently Asked Questions

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Many parents find it daunting to plan for their child's education and wedding expenses due to the rising costs.

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The blog explores three popular options:

  • Equity Linked Saving Scheme (ELSS): Offers high potential returns, tax benefits, and works well for long-term goals (over 8 years).
  • Sukanya Samriddhi Yojana: Ideal for a girl child, provides guaranteed returns, tax-free interest, and a lock-in period until she turns 21.
  • Public Provident Fund (PPF): Offers fixed interest, tax benefits, and a maturity corpus. Suitable for both girls and boys with a 15-year lock-in period.
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  • Risk appetite: ELSS offers higher returns but with more risk, while Sukanya Samriddhi and PPF are safer with fixed returns.
  • Investment horizon: ELSS is ideal for long-term goals (>8 years), while PPF has a 15-year lock-in, and Sukanya Samriddhi matures in 21 years.
  • Tax benefits: All three options offer tax saving benefits.
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Yes! All three options allow you to start investing with as little as ₹500.



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Ulhas | Posted on 19/03/2024

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