Investment Plans For Newly Born Child
- 1245
- 27
-
- Last Comment
Please Suggest.
- Sort By
Return in SSY is Not Attractive , Also Decreasing In Regular interval
My parents opened a PPF in my name when I was in elementary, and I suggest you do the same. You can make minimum deposits within the lock-in period and once your child starts earning, she can treat it like a tax saver FD (since post lock in, extensions are 5-year intervals)
Avoid Sukanya Samridhi, do sip in NiftyBees and GoldBees
Start SIPs in mutual funds
Put 35% in small cap ,
20% in mid cap,
20% in large cap,
Rest 25% in multi cap
Can we invest on the name of Child in SIPs? No Pan Card
for mutual fund investments is PAN card necessary or just a baby Aadhar card will suffice ?
Best ROI is in real estate, gold and stocks.
For stocks, buy index ETFs - either SIP or buy on dips. And dont sell it when market fluctuates. Keep it separate from your other stock investments.
You can invest a certain % in gold ETFs too if you want.
● Public Provident Fund (PPF as a capital protection measure. However, net of inflation, it still might have negative IRR.)
● ELSS (if the child is minor or the income from his file is getting taxed to the guardian, then Equity Linked Saving Schemes are an effective way to aim for 'market linked' returns, whose tax-adjusted yield is often more than the fixed income products.)
● Gradually building the corpus for investing in such real estate, which TODAY seems even outside the outskirts of the town or may not develop for even 15-18 years.
● Alcohol, wine cellars or if none are available for investments, then maintaining such facilities as required for the safe keeping of exquisite alcohol with insurance for the stock.
Depending on whether they are packaged or still in the barrels, the aged alcoholic drinks can later fetch reasonable returns.
● Sometimes, looking at companies, groups with stable management and relatively non-shady promoters, relatively clean management.. there is no harm in investing in direct equities either, of-course by showing the assets.. directly in the books of the child.
many FMCG companies have stood the test of time, ancillary industries (say: tyres) have outperformed peers (Ceat, MRF, Bridgestone, Michelin type groups have fared well despite all the economic cycles), infrastructure projects companies too are often a reasonable hedge against capital erosion. (I agree, there were and are Enrons, but there also are Siemens, Larsen and Toubros.)
classic well diversified pharmaceutical companies, companies thst are into diagnostics .. too are unlikely to have a sudden catastrophic failure.. from which they might never recover.
I mean, the Olympus fraud https://ft.com/content/fb6974b0-9066-11e1-8cdc-00144feab49a, Lehman Brothers aren't THAT far ancient to get completely wiped from our memory.
what are the odds of a Novo Nordisk (which has a better debt rating than its home country), Roche Diagnostics failing?
Ironically I mentioned Roche Diagnostics on a day which U.N. now treats as 'world diabetes day'.
Philips is another name, whose diagnostic equipment are invariably in almost every ER, Neonatal Intensive Care Unit, trauma care facility, triage rooms, clinics.
Thus, unlikely for the investments, capital to erode in stable, professionally managed groups.. when one is continously invested in them. (Stock splits, bonus issues, rights offers, dividends matter.. besides just the valuations.)
https://livemint.com/money/personal-finance/happy-childrens-day-2024-top-investment-options-to-secure-your-kids-future-ppf-bank-fd-mf-sip-nps-and-more-11731486476252.html
DO NOT invest in Sukanya , FD, PPF ..all govt schemes to fool the fools ... To save under section 80C. Always chose tax saver mutual funds (3 year lockin period). Best invest in stocks like laursen and torbo, reliance, kotak, HDFC ,( 30% in adani power n tata power) ... After ten year.. be ready to slap yourself after comparing sukanya and stock market returns 
Avoid Sukanya Samridhi, do sip in NiftyBees and GoldBees
Start SIPs in mutual funds
Put 35% in small cap ,
20% in mid cap,
20% in large cap,
Rest 25% in multi cap