Investment Tips: If you want to create a big fund for children's education or marriage, then follow these five things..
In this era of inflation, we never know when the money received from salary or business is spent. It has become very difficult to save money for future needs. This is the reason why every parent is worried about the better future of their children. It costs a lot of money to educate children. Collecting enough funds for the marriage of children has become a big deal for a middle-class family. Investment advisors say that creating funds for expenses like children's education and marriage requires long-term financial planning. Just like retirement planning, you should also make an investment strategy for the better future of your children.
Everyone wants to have a good amount of money in the future to meet the necessary expenses of children. For this, many parents also invest money in some schemes. But, not every parent is able to accumulate sufficient funds for the future needs of the children. The reason for this is a lack of knowledge about the basics of investment. Today we will give you information about four elements necessary for a big fund.
Estimate expenses
AR Hemant, Associate Vice President (Communications), Bankbazaar, says that the expenditure on education is increasing at an annual rate of 12 percent. Therefore, if Rs 1 lakh is being spent on education today, Rs 2 lakh will be spent after six years. Therefore, if you want to create a fund for children's education or marriage, then you should know when you will need money and how much it will be. Then accordingly, invest that much money in a good investment plan so that the desired fund can be created.
Early investment
The sooner you plan and invest in the future of your children, the more you will benefit. Hemant says that time is very important in achieving any investment goal. If you start investing soon, you will achieve your goal in less money. At the same time, if you start investing late, you will have to invest more money. If you start investing soon, your costs will be less and you will get more benefits of compound returns.
Invest your money in the right place
Hemant says that today education has become very expensive. It is not possible to afford higher education through traditional savings options. Therefore, money should be invested in savings options that beat inflation. Equity mutual fund is a good tool to create a strong corpus in the long term. If you want to save ₹1 crore for your child's college in 18 years, you should invest money in equities. If we consider the average return of the equity market to be 12%, then Rs 13,500 should be invested every month in mutual funds through SIP. In 18 years you will have a corpus of ₹1.03 crore. At the same time, if you want to invest money to meet your short-term goals, then avoid investing in equity. If you want to invest money for two years, then you should invest the money in a bank recurring deposit (RD).
Financial discipline is very important
Financial discipline is very important to save money for the future. This is not a short-term investment. For this, good planning and continuous work are required. Whatever investment scheme you invest in, keep in mind that it should continue continuously.
Investment diversity
AR Hemant says that there should be diversification in investment. You can reach your goal through many paths. But, some paths are better than others. Diversified equity funds are best suited to achieve long-term goals. But, along with this, it is even better if you also invest money in debt funds, post office savings schemes, and real estate.
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