Want Your Child to Study At A Top University ?
Will You Have Enough Money For Their Marriage ?
Or Funding Any Special Dreams They May Have ?
These are some questions which people start thinking about much later in life when their children have grown up. A lot of us also end up buying ‘Child Insurance Investment Schemes’ and thinking it will meet our needs when we have children.
However, before buying the products how many of us first identify the amount of money that will be needed in the future ?
At Finqa, we take a more holistic approach.
What’s included in planning for your Child’s Future ?
- Calculation of the Future Needs (e.g. estimating the amount of money required for Higher Education)
- Review of your existing expenses, savings and investments.
- Recommendations on amount of Investments required to meet those goals
- Recommendations on Investment Products that you should buy to meet those goals
Who is this plan for ?
- Anyone who has just had a child, or has young children.
- The earlier you start, the larger a corpus you can grow over a 15 – 18 period.
E.g. If you start investing just Rs 5000 per month in Equity Mutual Funds, increasing at the rate of 5% p.a. which can give an average return of 12.5% p.a. here is what you can expect to have:
- ~ Rs 50 lakhs when your child turns 18 years old
- ~ Rs 80 lakhs when your child turns 21 years old
However, instead of investing, you buy a life insurance policy or leave the money in fixed deposits, you will only have around half the above amount.