2 Replies to “What are the investment modalities that can be made for my son of 14 yrs , in his own name ?. ?”

  1. You can try several options

    – HDFC Unit linked plan
    – LIC life insurance policy which more focuses on returns.
    – Mutual funds
    – ICICI Investment Bonds
    – Fixed deposites
    – Gold preserved in vaults with a authourity of your SON.

  2. Palash,
    You can have the investments in your name and have your son as your nominee. This would avoid a lot of complications while opening those accounts/investment options 🙂

    Reg. investment for your son, if your investment horizon is atleast 5 years then you must considering going high on equities

    First you need to come up with an asset allocation patten. i.e, you need to decide in which segment of companies you would like to invest more. based on the asset allocation, then you need to shortlist the best possible companies that are trading at attractive valuations and the go ahead with buying them.

    For eg. a sample asset allocation could be Equity – 70% & Debt – 30%

    This asset allocation for equity & debt should be in such a way that the % in debt should be your age and the % in equity should be 100 minus your age. For eg. if your age is 25 then equity should be 75 and debt should be 25%

    For equities you can consider investing directly in Large cap stocks or Diversified Equity mutual funds or ELSS mutual funds.

    To know more about Equity shares visit: http://anandvijayakumar.blogspot.com/2008/10/equity-shares.html
    To know more about Mutual Funds visit: http://anandvijayakumar.blogspot.com/2008/10/what-is-mutual-fund.html

    For Debt you can consider investing in Bank FD’s or PPF or NSC etc.

    All the best. Happy investing.

    mail me at [email protected] if you need any more details.

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