Best Investment Options For Child – 2023

5 Best Investment Options For Child – 2023| Investment options for your children| 5 Best options for investment for child| Early investment options for Kids-2023

Introduction to Best Investment Options For Child:

Every parent dreams about a secure future for his/ her children. In whatever way they can, they strive to save and make their children’s future secure. Although the future’s requirements and assessment is tough , proper planning and savings from the beginning can make the path easy for parents as well as their children to avoid any financial crisis during his/her upbringing.

The key to choosing a correct and appropriate plan for a child is having knowledge about the options of investment available in the market which could surpass the inflation as well as help to provide a handsome amount at different stages of child’s life. It varies from parents to parents about the choice they made to invest in the future of their child depending upon their risk taking capabilities, their income sources and options available to them.

Parents looking for the best options available for their child for future investment may refer here and we are providing you with the best 5 savings options available in order to secure the future of their kids as well as having better returns.

How to plan for options available with parents for Child-Saving Plans

Savings should be an essential part of the budget for parents in which the requirement of the corpus for the future of children must be accounted for.

Parents must envisage different stages of children where they will need money and in different span of years. Similarly, factors of inflation should also be taken care of. For e.g. the current expenditure in education will not be enough for the expenditure to be incurred after 10 years. Education, Medical, Needs and exigency funds must be envisaged for future in order to avoid any financial hustle during their upbringing.

Here we will tell you 5 best options available for your kids where you can save and plan for their future in best ways:

1. Government sponsored Sukanya Samridhi Yojna (SSY):

As the name suggests, the Sukanya Samridhhi Yojna is related to girl child only and parents can save on monthly basis through this scheme and build a good amount of corpus giving good return also.

The Scheme can be opened in any Banks or Post office with a minimum yearly instalment of Rs. 1000 to Rs. 1.5 Lakhs. It can be opened for a girl child upto age of 10 years and maximum investment has to be made upto 15 years. After that it will earn interest upto the age of 18 years of girl child.

It pays a good interest rate of more than 8 % and treated as best investment option for a girl child.

Parents having upto 2 girl child can open Sukanya Samridhi account and avail the benefit of excellent return and guarantee of government.

2. Investment in Banks or Financial Institutions:

If you are looking for secure and guaranteed savings, investment in Banks is also a good option for you. Banks provide facilities for providing fixed deposit schemes as well as Recurring deposit schemes.

For Regular saving purposes, Recurring Deposit Scheme plays a better role over Fixed deposit scheme. Recurring Deposit will provide you a flexibility of investing every month whatever amount you want starting from Rs. 100.

Two types of Recurring Deposit: Banks offer two types of Recurring Deposit, Fixed amount Recurring Deposit and Flexi Recurring Deposit. In Flexi scheme, you can deposit the base amount and in multiple of base amount and limit upto as per different bank’s policies.

As the name suggests, flexi offers a flexibility of amount to the customer and he/she may deposit depending upon the savings in every month.

By opting for Recurring deposit, you can fix the interest rate for a longer period i.e. upto 10 years.

3. Investment in Gold:

Here we are not talking about Physical gold but we are referring to Sovereign Gold Bonds issued by Govt from time to time. Government of India issues tranche of Sovereign Gold bonds during a financial year. Customers have the option to opt the SGB from their respective banks either offline or online.

These investments are assumed to give a good return and a very secure one backed up from the government’s guarantee. Also they are safe from the threat of being stolen or lost.

4. Investment in PPF:

Next best option for making investment is PPF i.e. Public Provident Fund. It is also one of the government guaranteed investment option with best interest return. Currently PPF is paying interest more than 7%. If you have a long term investment plan for your children, PPF can be a best option for you.

The minimum amount is Rs. 500 and maximum is Rs. 1.5 lakhs per FY. The time period of investment is 15 Years.

Best benefit of the above investment is that the depositor gets the rebate of maximum of Rs. 1.5 lakhs under section 80C of income tax act also.

5. Investment in NSC:

Similar to PPF, NSC is also a long term investment option for your children currently giving more than 7% of interest rates. The NSC can be opened in any post offices and there is no maximum amount under this scheme.

Although the schemes we have mentioned above are not exhaustive but are best in terms of interest rate and guarantee of government.

Anyone can consider them as safest investment instruments as well as giving best of the best interest returns in the current market scenario.

The interest rates given by these instruments will definitely beat the inflation and provide you the bulk amount at the time of its maturity.

Definitely, by investing in these instruments, you will feel safer and confident about your savings and can sleep comfortably without much thinking about your child’s future. These are very low risk instruments and side by side secure also. Various market linked instruments are also available in the market with higher risks and higher returns which we will cover in another article.

Hope this article has given you enough insight about secure and good return giving instruments for securing your child’s future. Keep Saving, Keep Investing…

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