7KCR - Child Future Planning

"If there must be trouble, let it be in my day so that
My Child may have peace"

Plan 2 Goal

Age of your child

Yrs

Years to save for this dream

Years

Current estimate of this dream

INR

Assumed rate of returns

% p.a

Assumed rate of inflation

% p.a

the given output is based upon your selected return target by assuming the inflation rate % pa

Your target amount

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You need to save

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Per Month

You need to save for

Months

Lumpsum Investment SIP Investment

Select	Scheme name	Latest Nav	Return(%) 3 Months	Return(%) 6 Months	Return(%) 1 Year	Return(%) 3 Years	Enter Amount	Debit Date

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Child Education

Financial planning for Child's Education is a concern that continues to exist within the hearts of every parent. Parents don't want their kids to go through the pain, hardship, shortage of money and resources, which were once acknowledged by them. Let 7kcR take the responsibility to guide & enlighten your investments, to cover your financial needs for this goal at the deepest level.

Mutual funds for Child's Needs

Stick with diversified equity mutual fund schemes. Start SIP in 2-4 equity-oriented mutual fund schemes with a mix of large-cap and mid-cap funds too. Keep adding additional funds received by children on birthdays or gifts from grandparents to the same mutual fund folio. One may even invest through equity-linked saving schemes that will not only save for child needs but also save tax. As and when the child needs funds for education purpose, redeem units but keep the investment on. "Short-term needs are better off financed from current income. For accumulating funds for an education goal that is 3-5 years away, one can opt for SIP's in balanced funds and for longer-term goals, SIP's in mid cap and large cap equity funds are suitable", advices Bose.

PPF for Child's Needs

One may also consider investing for child needs by opening a public provident fund (PPF) account in the child's name. PPF is a 15-year scheme and would help create a tax-free corpus for the child. As and when the child needs funds, withdraw partially anytime after sixth year i.e. start of the seventh year. Once the child becomes adult, the contributions may be made by the child too and the same account may be extended indefinitely. However, remember that PPF is a debt investment and hence inflation-adjusted return would be low in it, thereby impacting wealth creation. Also, the combined limit for parent and child PPF accounts is Rs 1.5 lakh per annum.