Plan for your child
By Neelima Shankar
Print    Email    RSS   

Invest early

Higher education in the fields of medicine, engineering or courses in overseas locations can cost you exorbitantly 15 years from now. Assuming a modest inflation rate of 6%, a degree in medicine which costs around Rs. 10 lakh today, will cost Rs 28.54 lakh in 18 years.

Accumulating savings of this enormous size seems a herculean task, but can be achieved if you start early. If you invest in a portfolio that yields a return of 11 percent, it will generate savings of around Rs. 28 lakh. Since bank deposits offer low interest rate they would not be enough after factoring in inflation and taxes.

Avoid child plans by insurance and mutual fund companies

ULIP child plans are not recommended by financial planners because of high costs, low liquidity and low transparency levels. Child plans by mutual funds are also not recommended by planners due to their inconsistent track record and low assets under management.

Also, you are penalized if you exit these plans early. Child Plans by mutual funds are largely balanced funds but not similar to regular balanced funds since the asset allocations are different.

Page    | 123 |  
(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

An insight into education loan schemes for...
Bank loans that could glitter for you
Education Loan for B-Schools
Interest servicing during moratorium...
Carnival of Indian Personal Finance Blogs #6

Where is Dissertation Help India whose email is...
ROPAR: CaℒL Giℛℒ In Kurali 09855660911...
Why Pitampura Tutors (Ph:- 9911742311) & Private...

Banks to look forward to hire students from IIT/IIM Feb 18, 2015
Union Bank of India hiring for the post of specialist officers Feb 16, 2015
Canara bank launched scholarship Scheme Feb 13, 2015
AXIS bank started ‘My idea of progress’ Campaign Feb 12, 2015
RBI inviting applications for the guard post Feb 11, 2015
News Archive