Providing the best for your new bundle of joy is every new parent’s dream. Planning ahead for your child’s future needs will ensure that they can get the best education. The best way to plan for this goal is by Goal-Based Investing.
- Decide when you will need the money.
- How much money will you need when the time comes (inflation adjusted)?
- Then decide how much you want to start investing now and for how long?
- Understand your risk appetite.
This is goal based investing. This technique ensures that you achieve your goal on time and that there are no shortfalls.
You can start a SIP for this goal. Since Child’s education is a long-term goal, in your case at least 18 years, you can invest 80% of the SIP amount in an equity mutual fund and remaining 20% in a debt mutual fund. If you are risk averse then you can increase the debt proportion of your portfolio, this will also increase the SIP amount.
If you already know how much your target amount is then you can choose one of our pre-designed goals or even get a recommended investment plan based on you goal and risk appetite.
You can Choose Your Own Goal here
Find the Best performing Mutual funds here
Happy Investing!!!
Checklist:
Use Goal-Based Investing for plan for your Child’s higher education.
- Decide when you will need the money.
- Decide how much money will you need when the time comes (inflation adjusted)?
- Then decide how much you want to start investing now and for how long?
- Understand your risk appetite.
- Start an SIP.
