You should start early to save for your child's education. There are numerous children plans available that are offered by various insurance companies. Most people invest in such plans due to emotional value attached to these plans. However, such offerings are not recommended by financial planners.
You can also invest in a children plan through mutual fund route but these plans are again not recommended due to their inconsistent track records and low assets under management.
Apart from this, there are products like ‘Kotak Starkid facility' that allow investors to choose from three schemes offered by the fund house-Kotak 30, Kotak Opportunities fund or Kotak Tax Saver. Investment in this product provides you free insurance to the extent of unpaid SIP instalments. However, you have to commit to the fund house till the extent of the SIP period.
Open-ended diversified equity funds are the most appropriate when it comes to building corpus for your child's education. The best feature of such funds is the opportunity it gives the investor to rectify his mistakes and realign asset allocation.