Protect Your Child Future With a Plan |
Posted: February 4, 2021 |
As you come across newspaper advertisements and TV commercials of a young kid dressed up in robes smiling away at the cameras with a scroll in hand, it paints quite a picture. Suddenly your mind starts racing ahead and you imagine your child in such a happy moment. But that imagination is cut short when you start thinking about the money required to secure your child’s future. Saving for your children’s education is of utmost importance. Putting your child’s needs before yours by trying to seek the best possible education for their future requires you to prepare a sound financial plan in this ever increasing world of rising costs and rising inflation. With education becoming expensive with every passing day from primary to secondary to higher studies, it is essential to plan for it early by investing in investment avenues that deliver inflation-adjusted returns while leaving enough to meet future expenses. 1. Gather Adequate Information and Estimate Costs At the same time the average inflation rate (rise in costs) also needs to be taken into consideration while calculating the future costs of their education. Let’s take an example: A certain ABC school charges Rs. 25 lakhs today. 15 years from today, @ 8% annual inflation, fees would cost Rs. 79 lakhs. When you come to think about this amount as a whole, many people may not be financially ready to collect such amounts for their kids’ future needs. Today’s Expenses Rs. 25,00,000 Average Inflation Rate 8% Period of saving 15 years How much amount needed after 15 years Rs. 79,00,000 Note: This is for illustrative purposes only. 2. Invest in Equity Mutual Funds
3. Start Early and Invest Regularly via Equity SIPs Conclusion... Our objective of this article is to help you plan and protect your child’s educational future so that he/she does not face any hurdles when it comes to paying fess to accomplish their dreams. While economic fluctuations are unpredictable, planning early can give a certain amount of immunity and serve as a financial cushion during crucial times. The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Mutual fund investments are subject to market risks read all scheme related documents carefully.
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