Best mutual fund scheme for childrens education?



I wish to join a mutual fund for education purposes of my children. I have two children a girl of 5 years and a boy of 5 months. I can invest upto Rs. 5000 a month. Any scheme without too much risk but good return?

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8 Replies to “Best mutual fund scheme for childrens education?”

  1. Best scheme or vehicle are Vanguard either in their ETF’s or into their college saving plans. For the ETF’s my favorite is the Total World Stock Index fund since it’s 60% in the US with NASDAQ, NYSE and the American Stock exchange and the other 40% in Europe, Asia and Latin America. The Emerging markets give the last % for growth. You can also invest in the total Bond Index fund for safety. Good luck!



  2. Sir

    Talking about children is talking about concrete returns for the use of the money for future of your children.Mutual funds are risk bearing instruments which do not have a guaranteed return plan.Why do you want to be skeptical about the returns when you can easily acheive assured returns (even if they are a bit less). The risk with mutual fund is that if you invest 5000 a month for 5 years that is Rs.3.0 lakhs and after returns assuming at 18% (the best) your accumulated return shall be 4.0 lakhs max and the very next year there is a fall like it was in 2008 or as of today your investment shall be back to 3.0 lakhs or even lower.

    So it is a risk to invest for future of your children in MF and it will be safe to invest in Rd, Insurance and plain vanila saving in banks for an assured return.Divide yuor 5000 in to three parts and put one part in Reccuring deposit, one part in Insurance for chid schemes and one part in saving accountin a bank.

    Regards

    dhanint.



  3. Dear Sir
    Well ULIPs are a very good option, returns are good.
    It is the best way to safegaurd your child’s future.

    We have different plans which can give you good return, also some min sum assured.

    You can get back to me at [email protected] for more details.
    We are partners with Metlife & can provide you a good plan to secure your investments.
    Regards
    Ruchi Kedia
    Richhpal Finacials
    Mumbai


  4. When you are trying to build a corpus for children, the time horizon is essentially long. Therefore you should be able to take quite a bit of risk and hence select funds with mid-cap, small cap bias in addition to large cap. Large cap will provide stability whereas mid cap will provide much needed growth.
    Among the large cap funds you can look at HDFC Top 200, Reliance Growth, ICICI Pru Discovery etc
    Among the mid caps HDFC Mid-Cap Opportunities is a good fund.


  5. I think you should consider a monthly SIP scheme. That’s the best way to invest in mutual funds as that would spread your investments over a long time and protect you from the daily volatility/fluctuations in the market.

    As for which mutual funds to invest in; there are various reliable schemes to choose from such as SBI, Reliance, HDFC, etc. If you need help selecting the right mutual funds investment scheme for you, consider getting in touch with the experts at GEPL Capital. They will advise you on the most suitable scheme based on your financial objectives and risk profile!


  6. There are so many mutual fund schemes which can serve your purposes, but you need to understand that equity mutual fund schemes have a great volatility but rewards in great returns on your investments. Once you start investing in equity mutual fund you should continue the same in good and bad market conditions as then only it rewards with huge profits, and it is good that you are planning for SIP. You can invest you money in HDFC Top 200 Funds of Rs. 3000 and in DSP BR Small & Mid Cap Fund of Rs. 2000. By this you are spreading your financial risk in two different types of mutual fund schemes and different Mutual Fund Company as well.

    Regards,
    Trilok Mishra
    Certified Financial Planner
    TRILOK MISHRA Financial Planners
    Blogs: http://trilokmishra.blogspot.com/
    Web: http://www.trilokmishra.com





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