HomeInvestmentChildren’s Day – The greatest gift you can give your children is to inherit good habits, strong values, and growing investments.
Children’s Day – The greatest gift you can give your children is to inherit good habits, strong values, and growing investments.
November 14, 2022
Investing money for the future of the children – that’s what parents and grandparents want. The offspring should be able to start their own lives without financial worries.
With the right investment for children, this is not a problem even in times of low-interest rates. Whether it’s a child insurance plan, the best saving plan for a girl child, or a child education savings plan- we’ll tell you the best way to save money for children and which children’s investments are really worthwhile.
We have summarized the most important things in brief as well as our best tips and recommendations right at the beginning.
Parents or those who will soon be parents go through exciting, joyful, thrilling, and sometimes stressful times. You are often insecure, overwhelmed and always want to do the right thing for your offspring.
It is not only about the here and now, but also about enabling a secure future. Financial provision for your children also plays a major role in this.
Before you start investing for your children you should consider these aspects in advance. Even if the investment is about the financial provision of your child or children – first of all, you, your investment preferences, and your financial situation are the focus.
So, before we deal with the different types of best investment plansthat are suitable for such an investment, it is first about you: What do you want to achieve with your investment, over what period of time do you want to complete it, and how much capital do you have or want like to invest?
What is my investment goal?
Let’s start with the investment goal that you want to set yourself for your investment for children: what exactly is the money for the offspring intended for? Is it for education, marriage, or property? Is it perhaps about the child being able to fulfill a certain heart’s desire later and you would like to contribute the financial basis for this?
First of all, we make a rough distinction between short-term and long-term savings goals – depending on which investment goal you have in mind.
Short-term savings goals
Short-term savings goals are sums of money that are available at any time and at short notice while the child is growing up.
Mutual funds investment online and day trading stocks, for example, are suitable for short-term goals as such investments give you quick access to your money. Though we suggest that mutual fund investment should not consider as short term investment plan as it works on magic of compounding. So, if we keep investing a defined money every month regularly and in disciplined way, we will get good high returns through Mutual fund investments.
Long-term savings goals
Long-term savings goals are usually about sums of money that are intended for the time after graduation or after the age of 18. These sums of money can also cover the later financing of your children’s studies.
So that every rupee you invest today also grows with you, you should choose an investment product that at least maintains the value of your money- or even a little more.
Would you like to set aside enough money for your child to give them a good start in life? Then an ETF savings plan is ideal for long-term asset accumulation. They are particularly cheap, flexible, and transparent. In connection with a savings plan, there is hardly a more promising capital investment with a long investment horizon of ten years or more.
For long-term investment goals, we would like to recommend investing in a SIP plan: You pay fixed amounts into a fund at regular intervals. You can usually adjust the amount flexibly and also add one-off additional payments.
So with all this, we at RKFS, wishing all parents and children a very happy children’s day!