I want to invest for my son’s education. He will be starting his college soon. I have withdrawn my PPF investments that matured on 1st April 2013. Where should I invest this amount? I currently have SIPs in HDFC Equity and DSP BlackRock Top 100. I have recently stopped my SIP in Reliance Growth. Please advice.
-Anil
The money that you will be requiring in the coming year for your son’s education should be kept in a savings bank account or a short-term debt fund. The rest of the money should be invested methodically. Once your son gets admitted in a college, you will be able to figure out how much money you will need at different time intervals. All of this money should be in debt funds or fixed deposits. Don’t invest any of it in equities, because you don’t want to be in a situation where your investments are down in value when you need the money.
As far as your funds are concerned, you have done the right thing by stopping your SIPs in Reliance Growth. The other two funds have been performing well; you can continue investing in them.
This article was originally published on April 09, 2013.
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