Which is a good mutual fund scheme to invest for a newborn baby? Also, tell me a good fund for an SWP?
- Ratnakar
If you are investing with a horizon of 18-22 years for the newborn baby, then any equity mutual fund scheme is a 'children plan' for you. You don't need to invest in a fund that has been specifically named as a 'children plan'. Any good equity fund wherein you can stay invested in a disciplined manner would solve your purpose. In fact, you should also try and invest some amount to it every year on his/her birthday.
An SWP can be initiated in any fund. The basic objective of an SWP is to derive a periodic income in a tax-efficient way. A good fund for this would depend on your dependence on this income and the kind of return you are expecting from it.
If your dependence on it is non-negotiable, then mutual funds are not the first option for you. In that case, you have options like the Senior Citizen Savings Scheme, the Post Office Monthly Income Plan or the Pradhan Mantri Vaya Vandana Yojana- all of which give you a guaranteed return. So, choosing the right fund for an SWP would require more details about your requirements.
This article was originally published on April 05, 2019.
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