Planning Child's Future
Set specific goals for your child’s education & marriage and invest systematically to fulfill them…
By Research Desk | May 5, 2011
I have a 3-year old daughter and I am 38. How much should I save for her education and marriage? Which mutual funds can I invest through SIP for a long period? As I am not an active investor; I am looking for funds that I would not have to switch from often.
It is to start saving early for your daughter’s education and marriage. Both are goals that are 15-20 years to go and give you ample time to save. Setting the goal value depend on what education you think your daughter will pursue in the future; for instance an arts or commerce education will cost less compared to say medicine or engineering. Likewise, the savings for your daughter’s wedding will depend on what you can afford to save now as you should save towards both these goals without compromising your current lifestyle and your own retirement plans. Arrive at a figure that you are comfortable to save now and you can scale the goal as time passes and the goal year approaches near.
Actively managed mutual funds will call for your involvement with tracking and following the way your investments behave. This exercise is good enough if you have selected good funds. We suggest you invest in a portfolio of five funds which has 70 per cent equity exposure and is well diversified. Initiate SIPs with equal allocation in these funds and track their progress at least once a year.