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| Name | Financial Planning For Child's Future | Best of Investor Education |
| Video Uploader | Video From Kuvera |
| Upload Date | This Video Uploaded At 31-05-2022 09:11:26 |
| Video Discription | Presenting the best of investor education content, #CuratedByKuvera. Are you securing your child’s future through RD and PPF accounts and still feel it’s not enough? What’s the biggest threat to your financial goal? What kind of investment along with your regular savings can beat inflation? In this video by @HDFCMF we will be answering all of your doubts right away. Why saving is not enough if you want to secure your child’s future? It’s every parent's dream to provide the best for their children. Many of you might have saved a substantial amount of money to realize that future. But is it enough for your children until they are independent? In traditional savings instruments like bank deposits and endowment policies, the average interest rate is around 5-6%. Furthermore, the interest on bank deposits is fully taxable per the investor's income tax slab, which means that the post-tax and inflation-adjusted returns on such instruments are almost negligible. What’s the rate of inflation in the education sector? As you know, education plays a vital role in your child's success in the future. Schools and colleges charge very high fees today to impart any knowledge. The current level of inflation in education is around 8-10%, so you should not neglect this when planning for your child's higher education. Suppose a postgraduate program abroad costs Rs. 25 lakh right now, and your child will likely attend it in five years — assuming 8% annual inflation, the fees will be Rs. 36.73 lakh at that point in time. How can mutual funds secure your child's education? Beats Inflation Increasing inflation and competition make it increasingly crucial to invest in options such as mutual funds, which have the potential to beat inflation. Upon finishing their education, your child will begin their career or pursue a profession. Many Indian parents feel that it is their responsibility to spend on their children's weddings. Typical Indian weddings cost anywhere from Rs 8-25 lakhs. Helps you start early Starting early is always a good idea when planning for your child's needs. Due to compounding, if you start saving and investing early, you can accumulate higher funds by the end of your financial goal. (for example, your child's education) A majority of mutual funds are long term investment plans with lock-in periods. This help you inculcate financial discipline. Professionally managed Mutual funds not only beat inflation due to diversified schemes but also are managed professionally by qualified and certified experts who know how to allocate assets in the right proportions depending on your risk tolerance. Types of mutual funds It’s vital to optimize your mutual fund portfolio across equity mutual funds, debt mutual funds, and gold funds taking into consideration age, income, expenses, assets, liabilities, risk appetite, and time horizon to financial goals. Let’s understand this better: 1) Equity-oriented mutual funds Investing in equity-oriented mutual funds can be a great way to grow your portfolio. There are many different types of these funds available, each with its distinct characteristics and investment mandates: Researching and outlining your goals will help you find the right fund to accumulate the necessary funds. After assessing several quantitative and qualitative parameters, choose the most suitable schemes. If you're trying to decide whether to invest in a lump sum or through a systematic investment plan (SIP), it's generally best to go with the latter. 2) Debt mutual funds - Mutual funds such as Banking and PSU Debt Funds, Gilt Funds, Liquid Funds, Overnight Funds, and fixed-income instruments like Bank Fixed Deposits can help you lower your risks and stabilize your portfolio. 3) Gold - One of the most valuable assets in a recession, gold acts as a haven, a hedge against inflation, and a store of value during times of economic uncertainty. Additionally, gold is an excellent way to diversify your portfolio. What are Children’s Funds? According to SEBI, Children's Funds are equity-oriented mutual funds locked in for five years or until your child attains a particular age. Due to the lock-in, you must carefully assess your liquidity needs to achieve your goal. If the solution-oriented scheme underperforms during the lock-in period, you will not be able to switch to another worthy scheme. Final Words: Don’t delay and invest in mutual funds right now if you wish to provide the best education for your child that’s well within your means. If you haven’t already started your investing journey, click on the link to ‘Kuvera - Your Safe Space to Invest’: https://bit.ly/3JTbcJq |
| Category | Education |
| Tags | financial planning | financial management | child future plan | childs future | financial planning for new born | financial plans for child | long term financial | financial management goals |
