Planning for kidís financial future
Factors to keep in mind before planning
Planning for your childís future is very crucial to your childís well-being. There are certain points which one should keep in mind before choosing the investment options as it will help you generate optimum capital in future.
* Itís a long term capital requirement - You need the money after 18-20 years. Longer time frame gives you the flexibility of choosing risky options and you have enough time cushions, if you change your strategy mid-way due to unavoidable
* Itís a large amount Ė If you opt for engineering, MBA or any renowned professional course today, you need approximately 8-20 lakhs to complete the education. If we take only inflation which is hovering round 10 per cent, a very conservative costing estimate for pursuing the same course will be round 20-50 lakhs after 20 years. Itís a huge sum. This requires careful planning in terms of your savings, investment instruments, and execution.
* It is a certain requirement