An investment plan to secure your child’s future

Every parent wishes to give best of the opportunities, education facilities, career building options for their children. Taking into consideration the rising inflation costs, advance lifestyle measures, hefty tuition fees etc., this seems to be an impossible task with the stipulated source of income that you earn every month. For this, you need to do a systematic planning or draft a well-balanced child investment plan that will not only cater his or her present needs but will also take care of future goals, right till he or she settles down in life.

To work upon a plan, firstly you need to think about some elements. Think about the time horizon. How many years do you have for the goal to realize? For child’s future needs if there are 5 or more years to go, it is a long term investment. Longer the investment horizon, more risk your investment can afford.  Secondly it is necessary to plan what expenses you want to save for. You might plan to save for your child's education, career prospects or marriage. Lastly, parents should sit down and draw up estimated expense on desired higher education, career prospects or marriage expense etc. by adjusting inflation.

The article gives insight on some of the child investment plans that can help you fulfill the dreams of your child and ensure financial security for him or her.

Child Insurance Plan

Child insurance plans are one of the best tools to manage your child’s future financial needs in the modern day times.  Experts say it’s a long-term child investment plan that helps you slowly build the corpus with your current savings and ensure that you don’t hold back on your child’s future. These insurance plans take complete care of your child’s needs at regular interval for their education and future purpose. Besides, the biggest benefit of this plan is if anything unfortunate happens to the policyholder, the company waives of the premium of the remainder of the policy and provides lump-sum amount or money at fixed intervals for your child’s future financial security known as “wavier of premium” benefit.

Secured measures 

Debt Mutual Funds

One of the safest ways, it helps grow money evenly balanced and there would be little downside comparing to direct investing in stocks and equities.

Balance Funds

Another good option would be balance funds under which 70% of the amount is invested in fixed income securities while the remaining is played around in the stocks to get the desired returns.

ULIP plans

A low risk investor, who doesn’t believe in stock markets dependent investment scheme, can look for ULIP schemes which has low allocation and less ULIP charges.

Traditional Ways:

Traditional plans like investment in gold, white gold etc. also prove to be good option for child investment plan as it offers fair annualized returns. So take a call on gold ETF or physical gold and go ahead for it.

Bank Fixed deposits is another safe option that gives guaranteed returns within couple of years which also justifies as one of best child investment plan for your child’s financial security.

For every parent end number of security is insufficient for its children. But in the end, everyone has to take a call depending upon their income sources, child’s present ability and future dreams. While secured or traditional plans offer fair returns, a child insurance plan assure you that there will be no surprise roadblocks down the road ahead for betterment of your child’s future. It can surely make your child’s dreams turn into reality being one of the best Child Investment Plans of modern times.

Source: (http://childinvestmentplans.over-blog.com/2016/01/an-investment-plan-to-secure-your-child-s-future.html)