4 Ways to Invest For Your Child With Rs. 10K

4 Ways to Invest For Your Child With Rs. 10K
Conclusion

If you have a kid, the best thing you can do for them is to plan and prepare for unforeseen circumstances in the future and make sure they are financially safe whether you are or are not around. Let’s assume you have an amount of Rs 10,000 to spare. You can either help a charity or invest the money to save and grow.

There are many options to choose from if you choose to be smart and plan to invest and watch your money grow. You can invest the money in your child’s future. This way, you can be prepared and carefree of the unforeseen expenditures that might come up in the future.

4 Ways to Invest For Your Child With Rs. 10K

Here are a few options you can choose from to invest in your child with 10,000/-:

Buy A Suitable Child Plan

Some life insurance plans are built to fulfill the needs of a child. They come with a waiver Premium rider or benefit that is efficient in helping a child. The waiver feature in a life insurance plan is to ensure that the plan does not end even if the parent or the guardian passes away due to unpaid premiums. The sum assured is paid for the child by the insurer.

Invest In Equity Mutual Fund

Professionally managed portfolios can be accessible to Small and individual investors of stocks, and other assets. The stakeholders tend to share the losses and gains of the funds they invest in proportionally. Mutual funds invest during a wide selection of assets, and their success is usually measured by the change within the fund’s total market capitalization, which is calculated by combining the performance of the underlying investments. A minimum of 7 years away from being an adult can be considered as a good age to invest in equity mutual funds by young parents. You must build a portfolio consistently performing schemes across large-cap and mid-cap funds.

Invest In The Equity Market

The equity market is the right place to invest in if you are a risk-taker. Here you can grow your money just as easily as you can lose it. If you like the taste of risk, Rs 10,000 is the perfect amount to shoot your shot and try your luck. You can buy stocks that have a good history or bet on stocks that you think will perform well. You must research before betting or buying a stock as you could lose all of your money if you do not do the right research. On the brighter side, you could win more than you put. You could literally multiply your initial amount.

Buy Gold

Another way of saving and growing your money is by investing in gold. This does not have to be physically bought. The best option to buy is through the gold ETFs because there is no extra charge for lockers and storage. If you invest in electronic form, there's no reason to worry about theft. Investing in small amounts each month and pooling up gold for a long period of time can get you a large amount of gold in the end. It can be used as a liquid asset. However, while you sell the gold, you will have to pay capital gains tax.

Conclusion

With Rs 10,000 there is a lot you can do. You can either donate some amount to any charity you like or invest it in the future of your child and fulfill one of the most important responsibilities as a parent.