Investing for child's education | Value Research You can invest in one or two diversified equity mutual fund schemes to build a corpus for your kid's higher education
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Investing for child's education

You can invest in one or two diversified equity mutual fund schemes to build a corpus for your kid's higher education

I would like to start investing for my child's (who is 10-months-old) higher education and marriage. I have seen you advising on TV shows that the best way to approach such investment is not directly investing in any child plans but to buy term plan for the insurance cover and investing in equity-oriented mutual fund schemes. My questions are:

  1. Do I need to invest in a set of MFs or select one each for each of my objectives. Please do recommend a few schemes.
  2. What are the tax implications on investment and withdrawal\closure.
  3. I already have a term plan cover for ₹50 lakh and would like to buy an additional cover for ₹50 lakh. Any suggestions?
- Nandeep

You can invest in one or two diversified equity mutual fund schemes to build a corpus for your kid's higher education. Don't add too many schemes to your portfolio as it will become difficult to monitor their performance.

Here is a list of our recommended schemes: Click Here

Your investments in these schemes won't fetch you any tax breaks. However, investments held over a year in them would qualify for long-term capital gains tax. That mean you don't have to pay any tax on the returns if you hold on to your investments for more than a year.

You should first figure out whether you need the extra insurance cover. Your insurance cover should be enough to take care of your financial liabilities and the financial needs of your dependents. Read: How to Really Buy Insurance

If you really need the extra cover, you can check online term plans like Aviva I-life, HDFC Click2Protect, Max online term plan.


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