Hyderabad: College and higher education costs are rising steeply yearly. To meet the expenses of your children's studies, you must plan years in advance. Thoughtful investments in long-term plans would make you financially ready to beat even a high increase in education inflation by the time your children reach college studies. For this, what you need to. Find out.
Gold investments
If gold or silver ETFs (Exchange Traded Funds) are taken, your future needs will be taken care of. Gold mutual funds are also available. These are not very beneficial when it comes to investment. In this case, Balanced Advantage and Hybrid Equity Funds can be considered. Since they have a tenure of 8 years, good returns are likely. If you invest for 8 years at the rate of Rs 10,000 per month, it is possible to get Rs.13,72,300 with a 10 percent return.
Exceeding returns
Many couples would like to provide adequate protection for their daughter's future needs first. For this, take a life insurance policy in your name for an appropriate amount. Currently, education inflation is high. It is likely to increase in the future. Wherever you invest, you should ensure that the returns exceed the education inflation.
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After another 15 years, your daughter will need money for higher education. So, you invest in diversified equity funds. The chances of getting good returns are high even though there is some fear of loss. If you invest Rs 15,000 per month for at least 15 years, you can get Rs 67,10,348 with a 12 percent return.
Life covers and SIPs
Many schemes are there for a person wanting to invest Rs 5,000 out of his Rs 40,000 salary per month. A life insurance policy should be taken for at least 10-12 times your annual income. Term policies which offer more protection with lower premiums can be considered for this. Take insurance policies from two companies with good payment history. Personal accident insurance and health insurance policies should also be in place. Invest in SIPs Rs 3 thousand out of the Rs 5 thousand you want to invest in diversified equity funds. Deposit the remaining Rs 2 thousand in PPF.
FDs
Senior citizens have some options in case their fixed deposits (FDs) reach maturity period. Secure 9% return schemes are currently not available. Some banks are offering up to 7.50 percent interest on fixed deposits for senior citizens. As an alternative to this, you can consider the Senior Citizen Savings Scheme, which yields 8 percent interest.
