Some of the fundamental requirements to build up a good corpus for your child's future include chalking out a goal with a clear time frame and corpus requirement, making regular and systematic contribution, being clear about the returns expected in each of the instrument and the tax implications, inflation effects over a long period for each of the instrument selected. When come to invest another factor you need to consider is inflation, the persistent changes in the inflation will inevitably decreases your income regardless of how cautious your saving strategy is. In the future, the cost of living will only increase.
Mutual Fund Schemes - There are plenty of mutual fund schemes presently available in the market to meet each and every need of an individual with a various risk appetites. It is always recommend for Systematic Investment Options to a get the benefit of cost average. Mutual Fund investments are subject to market risk; this SIP mode investment will reduce the risk aspects and enhance your returns. It is proved that, in the long run Mutual Fund investments are potential enough to deliver returns when compared to other investment options. It is better to start early to reap the benefits of compounding. Eg. If you deposit Rs. 10,000.00 each, every month in one of the good performing mutual fund schemes for 20 years, assume an average 12% return you will get Rs. 91, 98,500.00 at the maturity this is the power of compounding. Please note that this is only an example just to show the power of compounding. One should carefully choose a basket of schemes, which should be a combination of debt and equity investments. There are designated children mutual fund schemes are available, which can be combined with good diversified equity funds, which together can provide a much better growth opportunities in the long run. Those schemes launched specially for children named Education Fund, Marriage Fund, Children Career Plan, Young Citizen Plan, and Children Growth Plan. Don't look for the scheme label or branding instead look for the consistent performance and track record of the individual's schemes. Always, select consistently performing schemes with good track records and avoid New Fund Offers (NFO). Finally the scheme you are going to select should match with your risk appetite and return expectations.
To subscribe send a mail to Keralitesfirstname.lastname@example.org.
Send your posts to Keralites@yahoogroups.com.
Send your suggestions to Keralitesemail@example.com.
To unsubscribe send a mail to Keralitesfirstname.lastname@example.org.