In today's uncertain times saving for our child’s education can cause a lot of worry but with proper planning it doesn’t have to be. A great place to start is with a Systematic Investment Plan(SIP) that allows you to save a certain amount of money on a regular basis. For instance, if a parent adds a total monthly SIP contribution of Rs, 3000 or manages to save Rs 100 on a daily basis with a annual percent return of 20 percent then in just 15 years you can have a saving of nearly 34 lakhs.
The benefit of investing early is that you get the advantage of having time by your side. Investing through a Systematic Investment Plan (SIP) can help you to wade through volatility in the markets. Mutual funds have consistently delivered higher returns in the long term. It helps to manage cash flow during crucial years of your child and also protects your retirement account. In the last few years there have been many equity mutual funds that have given annualized rates of 20 per cent or more since its inception. To do any mutual fund investment in a child’s name, one needs to submit a valid document of proof of the child’s age. Typically you can give a birth certificate, passport copy, etc. One thing is important here. All minor SIPs will automatically cease to exist on the minor attaining majority (age of 18). Starting early with what you can is the first step to getting rich and what better day than Children's day. In conclusion, SIP is designed to beat the lows of an individual during crunch situations thus offering stability to the invested amount.