Safe Investment Options for a Child With Highest Return

Top 4 Safe Investment Options
Conclusion

If you want to provide a safe and financially secure future to your child, you must not vaguely invest in just any investment option. Considering all the aspects of investment and understanding the necessities of your child is important to provide a financially safe future for your child.

There are a lot of options ready to invest in but you must compare different aspects like the term, your income, the child’s future plans, and near goals for the child, like school fees and other short-term expenditures. If you do not pre-decide or compare and choose, there is a high chance of facing consequences like insecurity, returns that are not sufficient, returns that can not fulfill the child’s plan, etc. Hence, you must consider the safety of the plans that you invest in.

Top 4 Safe Investment Options

Here are 4 safe investment options you can choose from -

Child Plans

Child plans are a great way to start your investment for your child’s future. This is because they provide many benefits like tax benefits and make sure that the child is safe and secure financially even if the parent or the guardian passes away. In many cases, the insurer pays the sum assured on behalf of the cold if there happens to be a sudden death of the parent or the guardian. Child plans make sure that all of your child’s future plans are financially taken care of.

Gold ETFs

Investing in Gold ETFs means buying gold. It does not have to be physical gold. You can also invest virtually. This option can yield good returns and is a care-free option as there is no need to worry about safety. Theft is not possible if you buy gold virtually as the gold is not physically present. If you want to buy gold physically, buying small amounts of gold consistently every month and pooling all of it together, in the end, can give you a large amount of gold. This gold can be used as a liquid asset and can be converted to money when and where required.

Public Provident Funds (PPF)

Even if the parent owns an account for themselves, it is better to open an account only for their child. The benefit is that the investments you make in both these accounts are eligible for tax benefit under section 80C of the Income Tax Act, 1961. It is advisable to simultaneously contribute to both the accounts instead of just one account to save and grow money efficiently. The maximum amount that can be deposited to both the accounts combined at once is Rs 1.5 lakh. The maximum tax deduction in these accounts is Rs 1.5 lakh under tax benefits.

Stocks

If you have a taste for risk-taking, you can invest in stocks and become a part of the market. You must always remember that you can gain money as easily and as quickly as you can gain. You must do your research before investing in any stock. To keep your shares safe, you can invest in money-back plans.

Conclusion

In conclusion, you must invest in trusted investment options provided by legit insurers to provide a safe and financially secure future for your child or invest in other safe investment options like Gold ETFs, PPFs, and stocks. Before you invest in any of these, you must do thorough research of what you need, and how much you can invest and invest carefully.