investment for my 2 year old child?



i already have a good policy. Want more saving for my daughter limit is Rs. 2000/- month. please suggest any a/c, policy or any other source, where my money will remain safe.

investment for my 2 year old child?
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8 Replies to “investment for my 2 year old child?”

  1. Check out getting savings bonds… which aren’t really my favorite. I like CD’s. Try those out, plus… it has way better interest than a regular savings account.


  2. You should look into opening a 529 and, if you qualify, a Coverdell. This will allow your daughter’s or any other child’s investments to grow tax free if the proceeds are used for education later on. The 529 and Coverdell can be used for college but the Coverdell can be also used for private schools (K-12). Check with a CPA for Financial Advisor.


  3. In view of your recurring funds availability of Rs. 2000/= pm, funds safety, steady and good returns for a reasonable period till she becomes major and ready for specialised education, you may go in for a PPF A/c for her. The contribution to the a/c would also entitle you rebate in your personal income tax every year and would meet your stated requirements as well.

    An alternate could be a CD a/c in a commercial bank which may fall short of the PPF A/c option if not monitored, re-invested and handled carefully over the next 15 years or so.


  4. The definition of “safe” is important. If you put the funds into a gov’t insured savings account the cash amount is “safe”. The purchasing power in 10 – 20 years will most likely fall (due to inflation).

    Now would be a great time to start a stock mutual fund. There may be years where there is significant loss, but the good years should out weigh the bad.

    Consider an S&P500 index fund or an “Asset Allocation” fund from;
    Vanguard
    T. Rowe Price

    This would be a great gift with much greater potential.




  5. LIC Childrens plan or NSC Certificates for 7 Years or Bheema Gold policy particularly for children or Recurring Deposit monthly.


  6. Hi Candy,
    Consider HDFC Standard Life’s Young star Plus for children which gives double benefit to children. Remember the PAPA ads on television.
    Kindly revert for more info on the plan
    Regds.
    Vikas





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