Hyderabad : Every parent cares about protecting the future needs of their children. When it comes to girl children, they become all the more protective. A couple has two girls. If they want to invest up to Rs 10,000 per month for at least 15 years to protect their children, what alternatives are there?
The parents should first provide adequate protection for their girls' future financial needs, experts suggest. For this, they can take a term insurance policy of at least 10 times their annual income in their name. Invest Rs 3,000 out of Rs 10,000 in Sukanya Samriddhi Yojana. Invest the remaining Rs 7,000 in diversified equity funds in a stratified investment strategy.
They can try to increase this amount whenever possible. If they invest Rs 10,000 per month for 15 years, the average annual return is expected to be Rs 44,73,565 with an estimate of 12 per cent.
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Some people may want to invest up to Rs 25 thousand per month in mutual funds for at least eight years. For them, there are chances of good returns in some policies. But they should not forget that when they expect high returns, there is some risk involved. Allocate at least 30-40 per cent of investment to mid and small-cap funds. Diversify the remaining amount to diversified equity funds. Choose and invest in good-performing funds giving good returns. Review your investments once a year.
Is it possible for a 69-year-old person to take a term insurance policy? Yes, there is. But if all their financial obligations are met and have a retirement fund, there may not be much need for a policy. It depends on their personal preference. At the age of 69, the premium for a term policy is high. Contact two insurance companies and take out the policy as per your requirement.
If one wants to invest for ten years to mobilise financial resources to send their 12-year-old child abroad, they have to invest at least Rs 50,000 per month in schemes that give at least 11 per cent. They have to invest 20-30 per cent in US-based funds. Allocate the remaining amount to diversified equity funds here.
