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Investing for Child

Don’t get carried away by the names of children plans. Here's how you should invest for your child’s education…

I want to plan for my daughter's education. In addition to PPF for the next 15 years, should I opt for a child plan? Can suggest 2-3 ULIPs, or should I put money in aggressive mutual funds?
- Radhika Nair

A lot of naïve investors get carried away by the names of children plans. They believe such plans will do something special about targeting a child's education, which is not the case. Don't get mislead by such plans.

Given your timeframe, we would suggest that you don't even need to invest in PPF. It will give you guaranteed returns, but mutual funds can perform better over such a long period of time. You should start SIPs in a balanced fund. Through disciplined investing across market cycles, balanced funds will help you achieve your goal. The other important thing to remember is to start disinvesting your holdings as you come nearer to your goal, so that you're not faced with anxiety when you need the money.

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