It is the responsibility of every parent to offer a safe childhood and gift an even more secure future to their children. Speaking in terms of finances, there are various investment schemes where you can put in your money towards your child’s future. However, you must choose the one which offers assured returns and which aptly matches your financial requirements. Let’s know more about them here - Provident Fund During your professional work you may set aside a fixed amount every month towards your child's future in provident fund account. This can be withdrawn at the time of maturity to cater to various financial needs. Mutual Fund If you are are a risk-taker then then you can deposit in equity mutual funds. Though, they depend on market fluctuations they will still help you earn appreciable interest income by diversifying your investment in various funds. Fixed Deposit This is a low-risk, low-maintenance savings option offered by leading institutions such as NBFCs. They provide higher rate of interest on FD starting from 8.75% onward which helps to accumulate wealth and secure it for your child’s future needs. Besides, interest up to Rs. 10,000 is tax free. To save tax on income of more than this amount you can submit Form 15G and Form 15H to the lender. Moreover, there are two types of withdrawals available - cumulative (where amount is collected at maturity) and non-cumulative (where amount is collected at monthly, quarterly, half yearly and annual basis). Real estate
Buying a property is another lucrative investment option. As this is a long-term investment you can choose to gift them as a heritage thus, securing their future.
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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