When to start investing for your child’s future
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When to start investing for your child’s future

  • Highlights

  • Profitable investment schemes for your child’s future

  • Withdrawing PPF at the time of maturity

  • Low-risk investments with Bajaj Finance FD


Though it is best to start investing for your child’s future early, there is no harm in starting now. Investing as soon as you can, ensures that your funds grow over the course of time, matching your child’s growth and his or her needs.

Expert Tips on safegaurding your child's security

Here is a list of the investment options that will help you secure your child’s future.

1. Mutual funds:

Mutual funds are securities issued in the market, where investors come together, pool their finances and invest. It provides monthly dividends, so it is ideal for both short-term and long-term needs. Mutual funds also offer excellent liquidity. So, you can sell your securities at any time and use them to raise cash when the need arises. This tool is ideal for your child’s future because of its high rate of return.

2. Fixed deposit:

This scheme lets you invest a corpus in an account and gain interest for a fixed period. The rate at which your money grows is higher than that offered by a savings account. You are free to invest any amount of your choice, even as little as Rs.25,000.
FDs offer interest payouts depending on whether you select a non-cumulative or cumulative FD. The former gives you the option for monthly, quarterly or annual payouts, while the latter compounds the interest and pays it you at maturity, along with the principal.
Most fixed deposits also provide good liquidity. But, the extent of this depends on the terms of your agreement. If you’re looking to invest for a long period of time, Bajaj Finance Fixed deposits are a great way to secure your child’s future.

3. Children’s education plan:

This plan offers you the combined benefits of insurance and saving. It offers life cover along with the chance to build a corpus for your child’s education. If you opt for a unit-linked children’s education plan, you can also create wealth simultaneously.
The policy’s term is 8 to 25 years approximately ,and the premium amount varies from plan to plan. Some lenders also allow partial withdrawals, so you do benefit from some degree ofliquidity.

Additional Read: Are You Saving For Your Child’s Education In The Right Way?

4. Life insurance:

Buying an insurance policy helps you financially secure your child’s future. This means that your child’s life expenses will be taken care of even in case of your demise
These policies require you pay a premium, in exchange for an assured sum that covers various expenses. Life insurance plans are highly liquid and only require you to show evidence of your emergency to receive the insurance amount.

Investment Options for Child's security

5. Public Provident Fund (PPF):

This is a government scheme that involves investing a sum of money on a monthly basis. It lets you invest an amount as little Rs.500 and provides an interest at the rate of 7.8%.But,this is paid to you at the lapse of the tenor, which is 15 years. It is important to know that this scheme is not liquid.
You can only withdraw your money from the PPF at the time of maturity.It lets you accumulate your finances over time and can also be renewed, making it an ideal scheme to support your child’s future. If you invest in a PPF when your child is a toddler, you’ll have a sizeable corpus to fund their education at maturity.

Additional Read: Why Are Fixed Deposits Better Investment Avenues than PPF?

6. Sukanya Samriddhi Yojana Account:

This is a great option to secure your girl child’s future. It lets you deposit a minimum of Rs.1,000 per year and offers a high rate of interest of 8.3%.At the age of 18, your daughter has freedom to withdraw up to 50% of the balance.Then, once the tenor lapses, she can withdraw the remaining amount.This plan is ideal to finance your child’s future because of its stability and assured returns. It has a tenor of 21 years from the date of opening the account

Start investing for your child’s future now, and by the time your child is old enough to study in college and pursue his or her passions, you will have the funds to pay for all the associated expenses. Don’t forget to make the Bajaj Finance Fixed Deposit a part of your investment portfolio!

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