I want to invest for my new born child's education. Is there any way in which I can save tax by doing it?
- Rohit Sharma
Please don't consider children's plans from insurance companies to save tax. It is the biggest financial mistake many new parents tend to make.
You don't need a special plan to build a fund your child's education. You can use regular equity mutual fund schemes, including tax saving schemes, to fund your child's education. Equity mutual funds are ideal to fund long-term financial goals, as they have the potential to offer superior returns over a long period. Start a systematic Investment Plan (SIP) in an equity scheme and continue with your investments without bothering about the market conditions. Review your investments regularly and take the money out of equity and shift it to a safer avenue at least two to three years before the actual event so that a bad phase in the market do not upset your calculations.
This article was originally published on September 28, 2015.
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