Which is the best investment for child education?
Public provident fund (PPF) is also one of the best investment plansfor child education.
What is a child education plan?
A child education plan offers comprehensive benefit of life insurance cover along with maturity benefit. It can help you meet the expenses of your child’s future needs, even when you are not around. The plan can also be used as collateral for an education loan.
Is child education plan good?
They shell out a large portion of their savings to provide the best education. Hence, a financial plan to achieve this goal is very important.
Step-By-Step Approach To Plan Your Child’s Education Needs.
|Son’s Age||3 years|
|Time left for Graduation||15 years|
|Inflation Rate||10% p.a.|
|Cost at time of Graduation course||Rs 20.88 lakh|
|Amount Mr Shah needs to invest per month||Rs 4,180|
Which plan is best for child future?
Best Child Investment Plans
|Plan Name||Entry Age|
|HDFC SL Youngstar Super Premium Child Plan||Life option- 18/65 years Life & Health Option-18/55 years|
|ICICI Pru Smart Kid’s Regular Premium||20/54 years|
|Kotak Head start Child Assure Plan||18/60 years|
|LIC – New Children’s Money Back Plan||0/12 years|
Which is the best plan for girl child?
PPF (Public Provident Fund) is also a great investment option for your child and comes with a 15-year tenure.
|Parameters||Public Provident Fund|
|Rate of Interest||7.1% (Q1 FY 2021-22)|
|Entry Age||15 Years|
|Amount Payable on entry||Rs.100/-|
Which scheme is best for boy child?
List of 6 Best Post Office Saving Schemes for Boy Child in India 2021
- Ponmagan Podhuvaippu Nidhi Scheme.
- Kisan Vikas Patra (KVP)
- Post Office Monthly Income Scheme (POMIS)
- Post Office Recurring Deposit.
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
What is HDFC child plan?
This HDFC child plan is a traditional participating life insurance plan. Combines the benefits of an Endowment Plan and a Money Back Plan. The HDFC child plan offers definite additions in the first five years at a rate of 3% and 5% of Sum Assured every year if policy tenure is less or more, respectively, than 20 years.
How much should I save for child education?
After accounting for a 12% escalation in annual education costs, the expense comes to around ₹14 lakh on an average and upwards. This means that you need a sum upwards of ₹4.5 lakh each year for three years to fund higher education for your child.”
How can I save my child’s education?
Start a systematic transfer plan from your equity fund to a short-term debt fund (average maturity of 1-3 years). Rego emphasises the need to act conservatively when you are saving for a crucial goal that cannot be postponed. Keep in mind that the date of your child’s admission to college is fixed.
Where can I invest kids?
PUBLIC PROVIDEN FUND (PPF)/ DEBT FUND OR FIXED DEPOSIT (FD): PPF is the most popular tax-saving investment plan and long term investment scheme which can be opened in post office or banks. The interest rate on the PPF is market linked now and one can invest up to Rs 1 lakh in a year.