My father gifted my daughter Rs 1 lakh on her first birthday. Please suggest me how to invest this sum for her future education and marriage needs.
-Ashok TR
Starting early with investments in equity funds provides you the benefit of gains from the power of compounding. You can also benefit from the market cycles that will help grow your investments in the long run. We believe one should make systematic investments in diversified equity funds instead of lump sum investments. You can deposit the Rs 1 lakh in your bank and start a systematic investment plan (SIP) into a good large-cap fund. Franklin India Bluechip, DSPBR Top 100 Equity and ICICI Prudential Focused Bluechip Equity are some options.
This article was originally published on February 10, 2012.