INFLATION-PROOF YOUR CHILD'S FUTURE

Inflation might be stealing your child's future, but children's mutual funds can be their superhero

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Parents aspire to provide their children with a quality education and a fulfilling life. This often involves supporting them through important milestones, such as marriage. Unlike in Western countries where education loans are common, Indian parents generally view it as their responsibility to ensure that their children complete their education debt-free, allowing them to start their adult lives on solid financial footing.

Smart, goal-oriented financial planning is essential for achieving these objectives. Targeted investments to build a substantial corpus are essential stepping stones. Two key actions are imperative: commencing disciplined savings now and investing those savings in assets that provide returns outpacing inflation, ensuring real value growth over time.

Experts suggest that education inflation, between 11% and 12%, in India is by and large twice the rate of general inflation, often doubling every six to seven years. Thus, investing in products such as fixed deposits may not be sufficient as they may not even be able to beat general inflation at times. The mutual fund industry offers solutions designed to beat inflation due to the nature of their investment strategies.

A children’s mutual fund scheme is a solution-oriented investment plan designed to help parents build a robust savings corpus for their children’s future needs. This scheme offers a systematic way to accumulate funds over time, ensuring that children have the financial support they need to pursue their educational and life goals. By investing in this plan, parents can provide their children with the resources necessary to follow their dreams without the burden of financial worries.

FEATURES OF CHILDREN'S MUTUAL FUND SCHEMES