Securing A Child's Future With Mutual Fund Investments

Rajesh Bansal Managing Director, Midas FinServe Pvt. Ltd.

- Rajesh Bansal

Securing their children’s future is a topmost concern for any parent. Given the rising cost of education thanks to inflation, it is often not possible to meet the needs by mere savings. However, if one puts into place an early investment plan, probably before the child’s first birthday, financial-related stress can be kept at bay. This will not only help in taking care of the higher education costs but also their marriage, among other requirements. A child’s future is nothing but one of the long-term financial goals with a gestation tenure of anywhere between 18 and 25 years.

A knowhow of the needed ballpark figure, taking into account the factor of inflation, is a must before starting the investment process. This helps decide proportionate investment. Else, lower than required investment may not yield the desired results. For instance, if higher education currently costs ₹20 lakhs, it will rise to about ₹54 lakhs if one takes 5 per cent inflation over the next 20 years. Similarly, the current cost of marriage, say at ₹15 lakhs today, is likely to increase to ₹52 lakhs in the next 25 years.