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Don’t Get Emotional

Child plans are marketed to kindle the emotions of parents, but they’re not always the best products…

My baby is 15 months old and I want to invest for her. Please suggest the best way to invest for her education? Are child plans a good way to start investing?- Hari

It is heartening to note your eagerness to start investing for your child’s future education needs so early. Child plans from insurers as well as mutual funds are well marketed to kindle the emotions of parents, however, these products may not necessarily be the best to invest in. As you have several years to go before the goal, you have the benefit of time to build a sizeable corpus.
You should look at investing regularly in large- and large- and mid-cap funds to get the most of power of compounding and SIP investments. You should consider large-cap funds such as DSPBR Top 100 Equity, Franklin India Bluechip or ICICI Pru Focussed Bluechip or large- and mid-cap funds such as HDFC Top 200 or BSL Frontline Equity. All these funds have a proven track record and performance history. Make sure to monitor the progress of these funds and consider moving to debt funds as you approach the year when you need the investment.

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