One of the biggest financial worries for most parents is planning for their children's future and making it secure. As a part of this, the two things that they worry about the most are their children's education and further about their marriage. This is when different investment plans can come into play, promising good returns while also helping to reach their goals. Considering the higher cost of education and changing economic circumstances, knowing how much and how to invest in the best investment plans for children’s future is very important. If started early, one can save enough money and build a corpus fund as much as Rs 1 crore.

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It is a time-consuming process as parents will need to keep a fixed amount of money every month for a longer time, depending on the child's age and anticipated requirements in the future. You can follow a few simple investment plans to build the corpus fund for your children.

How to build a Rs 1 crore corpus for your child?

Real Estate: Real estate is one of the most promising and traditional ways to gain higher returns. This can be done by making a lump sum investment of Rs 25-30 lakh in a property that has better and long-term prospects. The compound annual growth rate plays a key role in determining the value of the property. At least 10 per cent CAGR on the aforementioned investment can help to increase the value to Rs 1 crore in 15 years.

Gold: While gold prices fall occasionally, it doesn't plunge significantly. Gold price often appreciates and most of the investors get a good return on gold investments. Being a traditional form of investment, one should engage in the practice of investing at least Rs 30,000-40,000 every month in gold and related instruments like Gold ETF, Sovereign Gold Bonds and paper gold. With an annual increase of 7-8 per cent in gold rates, the investment can reach a corpus of Rs 1 crore in the next fifteen years.

Fixed Deposits: As fixed deposits are regarded among the safest and widely used form of investment, they also come with guaranteed returns over flexible durations. Under this category, one can resort to various options including the national savings certificate, tax-free bonds, public provident fund (PPF), bank Fixed Deposit, and bank recurring deposit, which offer an interest rate between 6 and 10 per cent. For example, if a plan has an interest rate of 8 per cent, one can invest at least Rs 30,000 per month for Rs 1 crore goal. This will reach around Rs 1 crore in the next 15 years.

Insurance plans: There are also a lot of insurance plans that come with higher returns in the long term. This can be of great help in providing coverage to children in case of the insured's untimely demise. Along with the premiums, the tax benefits and the maturity benefits will help to accumulate a sizable corpus fund.

Mutual Funds: Mutual funds are one of the most reliable and preferred investment options when it comes to building wealth in long-term. They help to deliver higher returns, thus enabling investors to build wealth aggressively. There are a range of options including mid-cap, large-cap, hybrid, debt and debt funds. If an investor puts at least Rs 12,656 every month in high-return small-cap funds for an extended period of 15 years, a corpus of Rs 1 crore can be achieved, assuming an average return of 18 per cent.