What Is The Best Savings Plan For A Child
As parents, we all worry about our child's future and education expenses and even try to save money for their wedding. However, parents should go one step forward and consider providing their children with a secure future. Gone are the days when saving for a child's future meant considering money-back plans or ULIPs. If they plan carefully and invest in one of India's top child investment plans, they will be able to accumulate a large sum of money that can be used for their child's future.
What are the benefits of putting money into a Child Investment Plan?
If an individual needs to pay for their child's education and other expenses in the case of an unfortunate event, they need funds, and a basic term protection plan can manage this. Such plans are designed to cover all such costs. In addition, one can choose some of the In addition, one can choose some of the best child investment plans to build a solid foundation for their child's education. Here are a few child investment saving schemes you can consider :
- PPF : For a variety of reasons, this is the ideal plan to invest in. It's a 15-year scheme in which an individual can build a corpus for his child's education. This plan is tax-free under Section 80C of the Income Tax Act upto Rs. 1.5 lakhs per annum. PPF is an attractive plan to invest in as it helps build a secured future for the child with a lock-in period greater than usual plans. It is a safe and efficient investment that can help secure your child's future.
- Sukanya Samriddhi Plan : It is an advantageous savings scheme, backed by the Government of India, to invest in a child's future and education as it brings in an interest rate of 7.6%. Moreover, it is a tax-free scheme that ensures a secure future for a girl child, as currently covered under section 80c of the Income Tax Act. Sukanya plan is a good plan for children; however, this plan is valid only for girls. So, the next time one plans to invest in a child plan for a girl child, this is the best investment plan.
- Gold Investment : One of the best ways to secure a child's future is investing in gold, with the biggest advantage being that its rate typically only increases. In the past few years, gold has always been a reliable form of investment. However, when someone plans to invest in gold, it is better to not invest in physical gold. Instead, one can invest in gold ETFs or digital gold as this can reduce the risk of theft. This is a suitable option that can ensure better profit than other asset saving options. When one chooses to buy even a small quantity of gold monthly, they can earn potentially huge profits in just 10 to 15 years.
- Mutual Funds : Debt mutual funds can also be a good option for individuals who wish to make long-term investments to secure their child’s future. Moreover, they are tax-efficient options under the current tax regime, that generally come with sound returns.
Conclusion
While choosing the best child insurance plan, it is important to choose a plan that offers the best interest rates. It is also important to check which plan is tax-free. It is important to choose the best plan that can help secure a child's future.
Also read: What Is A Child Plan
