How To Invest for Children’s Future | Best and Efficient Financial Plan for Child’s Future | ETMONEY
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- เผยแพร่เมื่อ 29 มิ.ย. 2024
- Parents want their children to be happy, healthy and to be successful. What connects these desires in a direct or incidental way is ofcourse money. And this video is all about the planning that path which can help achievement the many goals you have planned for your child.
Topics covered in this video
00:00 Introduction
03:06 Where to Invest?
03:57 Insurance (Child Plans)
05:04 Mutual Funds
06:27 Fixed Income Instruments (FDs, Sukanya Samriddhi)
08:27 Gold and Real Estate
10:42 Some Useful Strategies
Four best practices that you can put to good use when managing money for your children
1.Set Realistic goals
2. Stick to a plan
3. Don’t be swayed by short term news and noise
4. Educate yourself
👉 WHERE TO INVEST?
INSURANCE
Child plan is pretty much like an endowment or a ULIP plan but it does have one unique benefit which is, that this plan does not terminate upon the death of the insured parent. However, since the time frame between now and the targeted goal is on the higher side in our opinion, a combination of mutual funds and a term insurance plan can do a much better job by not just earning more returns but also by providing a higher life insurance cover.
MUTUAL FUNDS
these children specific mutual fund schemes are nothing but aggressive or balanced hybrid funds that come with a lock-in period, a high expense ratio .. and often generate average category performance
In our opinion, there are a couple of alternatives to consider here
1 Invest in schemes within the broader hybrid funds
2 Invest in Equities for long term goals
FIXED INCOME INSTRUMENTS
The charm of using these avenues is most certainly the safety that these schemes offer and the perceived notion of their stability. Why perceived?
Reason 1 - Interest rates in these products are not fixed and are subject to change every quarter as one can see in the adjoining table
Reason 2 - Returns in these aren’t inflation beating.
GOLD AND REAL ESTATE
Real estate - the registering, renting, and maintaining of property is hard work and that sometimes it takes years to dispose of a property
Gold - the traditional approach was and continues to be the buying of jewelry or gold coins, which are then kept at home or in a bank locker. While this type of gold does not earn any form of dividend or interest nevertheless Indians do like investing in gold as it has a symbolic connection with auspicious events like a marriage.
Creating a portfolio of diverse asset classes is probably the right way to describe what a parent needs to do. And in that context having a combination of equity mutual funds, short-term debt funds, a Sukanya Samriddhi, a bit of gold and most definitely term insurance. This will not just improve the risk-adjusted return in the portfolio but will also ensure that there is enough liquidity and tax efficiency to work with.
👉 SOME USEFUL STRATEGIES
1. SEGREGATE AND AGGREGATE
No single investment avenue can take care of a child’s every financial need and for that reason, it is important to segregate into short term and long term goals. In addition to improving your cashflow planning efforts breaking your goals by tenure also clears your mind in determining which type of asset class is likely to work best in which case
2. USE SIPs TO ACCUMULATE
Specific to mutual funds .. the systematic investment plan approach to investing continues to be the most disciplined and progressive way of accumulating wealth. SIP don’t need a big outlay and one can start from as little as 500 rupees a month and it is this series of small and automatic accumulations that makes it one of the most popular investing technique worldwide
3. STICK & SIP TOGETHER AS A FAMILY
Family members can contribute a little amount every month towards an education fund for all the children within the family
4. SMARTER TRADEOFFS
The planning for a child’s financial future might also require you to look at some better tradeoffs or choices. For instance, instead of buying physical gold which gives no interest .. what if you instead buy an income-generating asset like a small shop
👉 Resources:
SIP Calculator - www.etmoney.com/tools-and-cal...
Videos:
GOLD : • Best Ways to Invest in...
SUKANYA SAMRIDDHI YOJANA : • Sukanya Samriddhi Yoja...
MUTUAL FUNDS : • Mutual Funds kya hote ...
TERM INSURANCE : • How much term life ins...
ASSET ALLOCATION : • How to do Asset Alloca...
PPF : • Public Provident Fund ...
👉 To invest in Direct Plans of top Mutual Funds for free, download the ETMONEY app: etmoney.onelink.me/unJQ/5ca1a...
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Straight to the point. Calm and composed way of explanining. No distractions of bell icon and request for like, comment or subscribe. Eventually, if people like it they will recommend to their friends, family and colleagues. thank you.
Watching this video at 21 because I feel I can learn something for my long-term goal setting 😊
Nothing goes waste. Well done
You are lucky man!
@@ETMONEY Sir I need a portfolio for buying house. Age 33 horizon 5 to 7 years. Can u suggest me a portfolio for 45000 a month please
@@CalDy4eva Kindly check out the ETMONEY app's "Find Mutual Funds" section. You'll see a lot of investment ideas based on your tenures, risk profile and goals
I feel proud when guys of your age take interest in financial awareness ❤️.. be disciplined you will gain in crores..
Aap apni bate is Tarah batate he Jaise koi Sant pravachan suna rha ho ... Sunkar BADA achacha Lagta he .
Aapne sauch me bahut Sahi jankari Di he dhanybad.
Sir, please make a valuable video on financial plannings for Just married couples. This would definitely ofrer a financial freedom. 💑
Thank you🙏 I am waiting for this video...
This topic is the top most reason for most parents to invest. Please share more details on things covered in last section of this video. Thanks 👍
Good video for children financial planning.. as always full of valuable information with well researched data.. thumb's up 👍 Sir..
Thanks a lot Ezhilan Arularasan. Glad the content was helpful
What a family example 👏👏👍👍
Commendable to see how easily and amazingly you do explain such complex subjects sir. I am learning alot about investments and also a presentation skills while watching your video which explains that one doesn't need to be loud or attempt to grab people's attention by doing anything unnecessary. Plz do add me to your FAN list sir...🙂
Very informative content and a much needed one. Shared to my friends as well. Thank you👌😍
Thank you. Glad you found it useful
Well done Shankar , i wish i got this information decade back. Nevertheless it is short and very insightful for new Parents.
I also picked up lot of HDFC ULIP for my child which didnt gave more than 7% due to too much charges.
Thanks for the appreciation
amazing indepth knowledge.....really great job sir....thank you so much....👌👌👌
I love this practical video.... Thank you so much!
You're so welcome!
Wonderful video, information provided is very very useful and helpful in creating my portfolio. Thank u sooo much for the insights.
Most welcome
A video worth its weight in Gold (or should I say Equity). Thank you, Shankar!
Most welcome. Thx for your appreciation
Best financial investment channel on TH-cam.
Thank you for your appreciation, Rajat Sharma
Superb explanation kudos sir
Very informative & useful, thank you!
Most welcome. Glad it was helpful!
Thanks for the insightful video, its very enlightening 👍
Plz put this in hindi too (so as to increase the reach of the video)
These kinds of videos are really an eye opener for all parents
Most welcome
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Thank you for the good video. Sir!
Glad you liked it! Thanks Prakash Raghunathan
I had been blessed to watch this video
Thanks. Happy to help
Again thanks for deep insight 🙏🙏
Most welcome
Just excellent 👍
Many thanks
clear and to the point!
Thanks!
very informative
Thank you for making these videos.
Most welcome. Glad you like them
Plz make a similar kind of review on retirement planning.
Done. Pls check out : th-cam.com/video/JYJZJmueOHM/w-d-xo.html
Awesome 👌
Much needed 👍
Glad to hear that
Any option of custodial account opening on etmoney app??
Very nice sir.
Thank you
I guess hdfc children gift fund by hdfc amc is quite good option. I have used it for my kids.
Please make a video on Hybrid fund .. would be extremely helpful
Hi. We already have done on the channel. Link: th-cam.com/video/XER-lCEc8QM/w-d-xo.html
Vry good explanation
Thanks for liking
How about Nifty 100 Index for long term index compared to NIFTY 50 .
Please make a video of possible
Video on this already available: th-cam.com/video/WAcVQ4hTz6I/w-d-xo.html
One doubt, even the 5 year's annualized return nit more than 15%, and the expense ratio is too much, can't we stay invested in index fund rather than this child funds ? We can reduce the fund expense fees in the longer run.
That's certainly an option available to you. Suggested not to use index funds only because they are cheap, understandably we are trying to improve our post-expense returns
Thanks for a great presentation as always. But somehow communication comes that ppf/SS/ etc. are less income bearing ones vs. MF, whereas MF is linked with market risk and the 12% return assumed is pre tax . Return of ppf/ss are tax free ...
Thank you
Dear Sir,
Is it possible to invest in direct mutual funds for minors? Most apps do not allow account opening for minors. Please guide
Good question
Congratulations for your new born.
My son is going to be 18 next February, and I want to invest for his future for the next 15 years through SIP in equity only. Kindly suggest me some funds.
That's good to hear, wishing him the very best. On the ETMONEY app we have mutual funds according to different ideas like MF for beginners, aggressive funds, long term funds etc. Kindly browse through that .. we have complemented every fund with a report card, a ranking and a rating which shall help you take the right decision. Look for large & mid cap / flexicap funds .. and preferably invest via the SIP mode
@@ETMONEY I can see a certain amount of excitement in the way you answered the question... Like the way an uncle is concerned about his nephew's financial planning.. Great way 🙏
Pls explain on NPS tier 2 investment
This video is a powerful contraceptive 😛
Sir hindi m bhi es type video bnaeye
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Nothing conclusive
To connect and support others in touch with them kindly make videos in national language that is hindi.
Telugu is the national language of India
I'm sorry you both are wrong, Dothraki is the national language
@@satyamprakash5658 as long as idiots learn India has no National language but only official languages, I don't mind.
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Please use hindi language.
हमने हाल ही में हिंदी TH-cam channel शुरू किया है। कृपया लिंक पर क्लिक करें और हमारे हिंदी चैनल को subscribe करना न भूलें
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We'll explained in short form sir 🙏