6 Best Child Investment Plans in India
There are several parents in India, who might be thinking to have a best child investment plan. I got a mail from Ms. Neelima requesting to help with the best child investment plan. She is worried about her 6 months child on how she can create a good plan for his education. It is common that we all worried about child education or money required to do a marriage for our children (it is immaterial now whether you have a daughter or son, the cost of marriage is more or less same). How to do investment planning for your children? How we can secure their future, even during our absence? Which is the best investment plan for child future in 2016? In this article, I would provide you about some of the best child investment plans in India. Are there any one time investment plan for child which is good? What about best investment plan for child marriage?
Are Children Investment Plans necessary?
In this modern world, both husband and wife are working. You start your day in the morning, go to the office, get into calls, meetings, struggle to meet deadlines, targets, unnecessary pressure from peers, etc. You would end up your long day by supporting on-site teams. If you are businessmen, you would spend every minute without having time to breath and end up coming back to home at 11 pm in the night. There is no time for us to think about saving, planning nor about our health. In such situation, it is better to have a plan for your child's future. You should ascertain how much money you may need for your child education or marriage based on current cost and consider inflation of 5% to 7%.
Also Read: How to invest in Top Performing mutual funds which can help for your child future?
How parents are doing children investment plans now?
While some parents are planning well for their children, some of the parents are blindly taking Unit Link Insurance Plans (ULIP’s). While insurance agents have been cheating investors by selling ULIP plans which charge high allocation and admin charges, due to lack of awareness, parents still believe this as a good investment plan for their children.
6 Best Children Investment Plans in India
1) Consider Additional Term Insurance Plan and balance savings invest in good investment options :
When I said term insurance plan, I am not saying you should take term insurance plan in your child's name. This is an additional term insurance plan you should take in your name for protecting your child's future. E.g. if you think that it would cost ₹ 20 Lakhs for your child education in future or for your child marriage in future, you can consider taking ₹ 20 Lakhs additional term insurance. For 30 years of age, this would cost you ₹ 5,000 per annum. Consider taking it for 20 year period after your child has born so that you can protect your child till his education. Your savings can be invested in a bank FD or mutual funds so that in case of death of parent, additional term insurance would be useful, otherwise, your savings would help in meeting child education or their marriage goals.
2) Invest in mutual funds through SIP
If you want to create good wealth for your child education or marriage in the future, one of the best ways is investing in some of the best performing mutual funds. You can consider investing in large cap funds and balanced funds. If you still believe that mutual funds are high risk even in the long run, try investing in balanced mutual funds. These are low risk funds, comparing to others. Do you know that ₹ 1,000 per month invested through SIP in top performing mutual funds @ 13% annualized returns can fetch you to ₹ 2.5 Lakhs in 10 years or ₹ 5.5 Lakhs in 15 years time frame. This is the power of SIP in mutual funds.
3) Invest through Recurring Deposits (RD)
Another best and low risk option to create children investment plan is to invest in recurring deposits. Since interest rates are at peak now, one can lock recurring deposits at this rate and create the best plan your children. Do you know that if you invest ₹ 1,000 per month in recurring deposit, you would get ₹ 2 Lakhs after 10 years or ₹ 2.8 Lakhs after 15 years (9% interest rate). Just imagine that if you can invest ₹ 10,000 per month, what would be the value of your investment.
4) Invest in PPF
Investment in PPF is one of the best way to lock your money for long term of 15 years. PPF account can be opened for 15 years. You can invest ₹ 1 Lakh maximum per annum and expect 8.75% interest rate per annum. Do you know that ₹ 100,000 invested in PPF per annum can fetch you a lump sum of ₹ 31.30 Lakhs at the end of 15 years which is tax free? You can have your child education done in a foreign university. If you are looking for children investment plans in post office, this child plan can help you (though PPF can be opened from bank too).
5) Invest in NSC
This is one of the best proven methods for child education plan. One of my friends has told me this plan. He started investing in NSC certificates (IX issue, maturity at 10 years) every year for ₹ 1 Lakh for tax purpose (80C) for 10 years. His expectation is that from 11th year onwards, he should be free from spending money for child education. He would get ₹ 2.34 Lakhs per annum from 11th year onwards for 10 years. What an idea, Sir ji?
Also Read: How to create wealth by investing in National Savings Certificates (NSC)?
6) Invest in ULIP Schemes
While I am not in favor of ULIP schemes, if you are a low risk investor and does not believe in stock market dependent investment schemes, you can look for ULIP schemes which has low allocation and less ULIP charges. You can expect 4% to 6% annualized returns from any ULIP schemes. Don’t get into the trap of insurance agents who promise returns higher than bank fixed deposits or returns which they compare with mutual funds and encourage you to invest in it. Investment in ULIP schemes should be your last option among the other child investment plans. If you are looking for best child plan LIC, you should review various plans available, hence do not jump and invest in one scheme.
Summary: While I have provided some of the best ways, you can consider them individually or in a combination to arrive the best children investment plan which suits you. Take the action today and create the best plan for your child education or for their marriage in future.
Readers, how are you planning for your child's future now? Do you think the above plans are the best ones?
If you enjoyed this article, share this with your friends and colleagues through Facebook and Twitter.
Suresh
Best Child Investment Plans in India
- Sakthi Finance NCD Issue (Mar 2025) – Interest Rates, Risk & Returns Explained! - March 15, 2025
- 11% Nido Home Finance NCDs – March 2025 – Should You Invest? - March 12, 2025
- IndusInd Bank Stock Crash – Which Mutual Funds Are Most Affected? - March 11, 2025
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.
Nice & helpful.
Thank you Nitesh
I have 50,000/ rupees…which scheme is best for deposit this amount for 5 yr plan…pls prefer me which one is best for my fixed amount 50,000…. Is any child plan for boy….also suggest me….
Hello, i would like to secure the future of my 5 months old grandson. Please suggest me a best plan of low premium.
Regards,
A. K. Jha.
hello ,
plz tell me the best LIC future plan for my baby girl whose 1 year old..
Thanks & regard
Akancha saxena
Pls tell me about the single premium investment scheme for new born girl child with details chart.
Good evening sir/madam,
This is kamesh reddy,am planing to investment for my sisters daughters. Age of 5 and 2 years. so can you suggest me a good plan for a single time for long turn.
Thankyou,
Kamesh reddy.
Sir,
I have 5 lakshs so plz send me best one for single time investment my Girl child 5 years old.
Thanks & Regards
A.Madhav.
Dear Sir,
My son is 8-year-old and for further his study at the age of 18 I just started investment of Rs. 50,000/- a year in LIC for 9 years. As per the document the sum assured is 5.00 Lacs but return will be received 7.5 max after 3 years. Please suggest whether it is a good plant to invest or should I switch over to Gold Etf or any other equity plan.
Awaiting for your valuable reply.
sir,
I have already taken LIC Jeevan anand scheme (20 policys) in the year of 2011. and i am paying around 91700 per year.some of my friend told that it was not good. and why it is 20 policys insteed of one.
Please reply me .is it good?
Kumarsamy, You can consider taking term insurance plan and then surrender this policy. Such policies would give 5% to 7% annualised returns which does not beat the inflation itself.
Good plan
how is sukanya samridhi scheme for 3 yr old girl chid
Good scheme to invest. You can invest
I want to invest 20k per annum for my son he is 3months old. For education and marriage plz suggest good term insurance and mutual fund plans
Hi Dr. Dhanraj,
1) If you want a secure and guaranteed return on your investment then LIC's Child Money Back Plan (832) is a good option. Below is the details:
Plan : Child Money Back Plan (832)
Age : 0
Term : 25
Sum Assured :500000
PWB Rider : Yes
Proposer Age : 30
1st year Premium With TAX 3.75% :
Yearly : 21605 (20824 + 781)
Halfly : 10925 (10530 + 395)
Quarterly : 5524 (5324 + 200)
Monthly(ECS) : 1842 (1775 + 67)
YLY Mode Average Prem/Day : 59
After 1st year Premium With TAX 1.875% :
Yearly : 21214 (20824 + 390)
Halfly : 10727 (10530 + 197)
Quarterly : 5424 (5324 + 100)
Monthly(ECS) : 1808 (1775 + 33)
YLY Mode Average Prem/Day : 58
Total Approximate Paid Premium : 530741
Money Back At :
18th Year : 100000
20th Year : 100000
22th Year : 100000
Bonus : 600000
F.A.B. : 225000
Approximate Return at Maturity Time 25th Year (40 % SA + Bonus + F.A.B.) :
1025000
Total Approximate Return : 1325000
2) For Term insurance Amulya Jeevan 2 is a good one. For the sum assured of 25 Lacs the yearly premium would come approx 8000
3) Mutual fund is also a good option only when you are ready to take the risk on your investment.
For more details you can contact me on mayekar.pushpa@gmail.com
Hi,
I have term insurance of 1cr for 35 years, and ICICI smart life for Children at 5k per month for 15 years.
I would like to invest money for grwoth and as well for childs future, would you sugest some?
Hello Umesh,
U should invest for life long assure of bajaj allianz for children's future plan. It would be benificial n hving good returns with 10,15,20yrs of term.
Sir, I have already taken a policy of bajaj allianz future gain of ₹2500 pm. For 10 year is it good or bad .
Its an ULIP. You should always stay away from ULIP. Consider term plan and invest your hard earned money in mutual funds.
It is good… don't worry abt that.u hv taken 3lac S.A…
Hi this is Pushpa,
i am from a small family, i can offered 1000 Rs/ month. My child is 7 year old, what is the best insurance plan you will suggest for me.
Hi Pushpa, You have not indicated whether you want insurance plan for risk protection or whether you want to get money back for your child education. My advice is consider taking term insurance plan and invest some money every month through SIP in mutual funds which would be help ful for your child education.
My girl child is just 4 month old.. Is there an investment plan where i can start now and get a lump sum for her education and studies..
Thank you
I want to invest around 80k for my eleven yrs old son as one time investment. where should i invest, so that i get back a reasonable amount when he is at 17.
Hi Manik, You can consider investing in balanced mutual funds if you wish to invest for 5-6 years. You can invest in HDFC balanced fund or ICICI Balanced fund
thank you
This is really very helpful if we can follow according to our capabilities
Thanks
Thank you Preeti. What do you do? How are you planning for your child future?
I want to invest one lakh to my grandson in onetime whose age is one year old kindly guide the best one for 21 tears of his age
You should invest in sukanya samridhhi sceme if you are looking to invest for girl child for 20-21 years and if for 15years you can invest in ppf, these two are best plans for your child which I researched.
I WANT TO INVEST RS 3 LAC FOR ONE TIME INVESTMENT IN LIC OF INDIA FOR MY CHILD AGE OS 1 YEAR.THE MATURITY AMOUNT SHOULD BE IN THERE HAND ON COMPLETION OF 20 YEARS. PLS GUIDE ME
my daughter is 12 years old and i want to invest 2000 per month for 10 years how i can get more return then suknya smridhi yojna
I want to invest RS. 5000/- per month for my child of age 18 month. The maturity amount should be in there hand on completion of 20 yrs. Please guide me.
My Son is 18 month old. I need to my son life secure. Please sugggest me best plan for my child.
I can invest an amount of 10000 per month and I like to do this for a maturity period of 15 years so that I can use this for my child's education as he's turning one year now. Can U suggest good plan for me
HAI SIR
MY KIDS ARE 7 YEARS AND 4 YEARS. WHAT WILL BE THE BEST PLAN FOR THEM.
I CAN INVEST MONTHLY 5000 RS PER HEAD. PLEASE SUGGEST ME.
Great!! Post is just informative & usefull
I WANT TO INVEST RS.10000/- EACH FOR MY GRAND CHILD OF AGE 12, 9 & 2 YRS.
THE MATURITY AMOUNT SHOULD BE IN THERE HANDS ON COMPLETION OF 21 YRS. AGE.
PL. SUGGEST ME BEST IDEAS.
My daughter is 11 year old . Still I am not invested any amt or policy her name. pl advice me for investment
best investment plan for girl child
Please guide me on the one time investment plan for my 9 months baby boy.
Hello, My son is 10 months, i want to invest 1,50,000 every year for next 18 years, I want to go for ULIP linked inusrnace plans which have 80% equity and 20% balanced fund. Please suggest good insurnace which is linked ulip.
MY DAUGHTER IS 15 MONTH OLD AND I LIVE AT SAUDI ARABIA , NOW MY FINANCIAL CONDITION IS GOOD AND I NEED TO MAKE MY DAUGHTER LIFE SECURE I WANT TO INVEST ONE TIME OR TWO TIME OR THREE TIME PREMIUM , PLEASE GUIDE ME ON THE MATTER ABOVE MENTIONED
POINTS
dear sir,
Suggest me to invest or take a policy for my child he is 3 years and my income is 25000pm for his future education. which is best lic,ppf,ulip,nsc,rd or mutual fund. which required low invest and high return ricks free.
Hi Manoj, Consider taking term insurance plan and balance invest in mutual funds through SIP. You can get good returns in long run.
Plz help my future child investment fire carrear
LIC is the best option .
I have a grand daughter born on November 4, 2016. I want to invest a one time payment for my grand daughter, since their parents cannot afford to pay monthly payments in their present financial status. Can you suggest the best policy for the child as a one time premium and not regular payments since as grand parents we are old couple and cannot pay premium for so many years
Dear Sir, you can plan with LIC which have best one time payment plan & you will get on time payment direct in bank account which time you planed to get money.please call on 09999247451 for best advise
Sir
My son 8 years old ,I want him to send for study in foreign country so what type invest plan I should take so he can take his entire education there , sir please K let me know
With regards
Dear Sir,
My son is 2 yrs old and i want to invest for his entire educations. Could you please help which is better option and monthly what amount i should target to cover his entire studies confortably? My age is 31 years old and i am planning to retire by 50. Please advise with proper suggested SIP / Other Plans so i can invest straight away.
Thanks in advance.
Respected Sir,
I have chosen the funds for Long term investment for my girl child and my retirement. I am 28 years old. Retirement Age plan 45 years.
Most of the funds I selected Smallcap. I want to invest Rs.6000 more, I will increase the SIP amount in the below Mutual fund or I will select the new fund.Kindly give your valuable advice and new fund names.
DSP BR Microcap fund = Rs.2000/month
Franklin india smaller companies fund = Rs.2000/month
Mirae Asset Emerging Bluechip fund = Rs.2000/month
HDFC Midcap opportunities fund = Rs.1000/month
SBI Magnum midcap fund = Rs.1000/month
Hi Bala, good to know about you. You have added most of them in small cap segment. Though these funds are good, add some funds in large cap funds too like ICICI Focussed blue chip fund, Birla SL Frontline equity fund, UTI equity fund etc.,
Hi,
I have a baby girl of 6 months,and I would like to invest 4lacks of money .which policy is best suitable for me for at least 15 years
Hi Thulasi, I am planning to write an article about best insurance plans for children next week, you can check my blog
Sir , i had started investing in
Ppf_3000 monthly since 6 years
Ssa_2500 monthly
Mutual fund sip / 500monthly
Stal pension yoja_ 577 Mont
Earning 14500 monthly
My age 32
what is your question srinivas. Your portfolio is good, however invest more in high return investment options like Mutual funds.
Dear sir
My son is 2 year 9 month old and I am in the capacity of sparing *Rs 40000/ per month(20000 out of my wife and 20000/ out of my account). We are interested in PPF and SIP and NSC. Kindly advise the best plans also which will benefit to both us also from tax point of view….Dr.Amandeep Jassi
Hi Amandeep, SIP in MF – No fixed returns, no lock in period, however expected to give superior returns if holded for 10-15 years. PPF has 15 years lock in period, interest rate is over 8% now, can change any time. Good for someone who does not want to take risk by investing in mutual funds 3) NSC – 5 years lock in period, can give over 7.5% interest rates. If you can take some risk, but willing to invest for long term go for SIP in mutual funds. You can diversify by investing part of the amount in PPF too.
Hi..I want to invest at a time 5 lake rupees for my daughter for her future prospects…iam in a confusion where to invest…whether in NSC or PPF or FD or in LIC Single Premium Endowment plan..where can I invest…I need tax benefit also where ever I invest and also my money should get lumsum during the time of maturity..
kindly suggest some advice..
There are several ways 1) Open PPF account in your name and in your spouse name, you can invest Rs 1.5 Lakhs each in 2 accounts for totalling to Rs 3 Lakhs. You can get over 8% interest for 15 years and interest is tax free 2) You can invest in tax saving FD schemes or NSC for 5 years and get over 7.5% interest rates. 3) If you can take some risk, invest in tax saving ELSS mutual funds which has lock in period of 3 years, however you can expect good returns.
Hi,
My baby girl is 1.3 years old and i would like to invest in long term for her educaion / marriage. I can invest 1000 – 2000 per month. Pls suggest me the some good plans…
Deepak, You can invest in any 2 mutual fund schemes from below 3. 1) Birla SL Frontline equity fund 2) ICICI Pru Top 100 mutual fund 3) ICICI Pru focussed blue chip fund.
Hello sir, my doughter is 11 years and son is 9 years and i can save only 5000 monthly can you tel me which plan is good for childrens future for education marrige and many more.
Yogendra, Good to know that you want to save 5,000 per month for your children. I hope you have taken necesssary term insurance plan. Invest these 5,000 in 2 mutual funds like ICICI focussed blue chip fund or Birla SL Frontline equity fund. If you want to invest more, invest in these top 10 mutual funds in future.
Hi Sir,
I want to invest around 2000/month (next yr 5000) for my girl child of 1 month old, please suggest good option with scheme name.
Thanks
Hi I want to invest about 5lacs for my 2 year old son. What can be a good single premium plan for a period of about 20years?
Hi Nilesh, you can check this article about some of the top single premium plans. https://myinvestmentideas.com/2015/10/best-single-premium-insurance-plans-to-invest/ alternatively you can invest such money in mutual funds, if you can take some risk.
Respected sir , i hv 2 kids age 4 yrs and 9 yrs which plan i invest fr there education should i buy any lic fr there education or something else plz suggest thnx
Hi Dheeraj, First take term insurance plan. Second is invest your savings in some of the large cap mutual funds which can fetch you good returns in long term of 8 to 10 years. All the best
Best plan in Hindi language
Sir, my son is 11 month old. and i am invest for his education plan for my get best education.
i am afford invest for recurring deposit RD.
how to open recurring deposit. i am not understand this plan open is bank and other lic.
plz suggest me this is a bast plan for my son
Which plan do you suggest for a 13 year old if I start investing now, for education and marriage?
I want to know about ppf. I have a one year old child. I am myself a tax payer employee.
Prefer SIP rather than PPF Bro.
R/Sir, We are in railway qtrs. In March we bought a new house for 60L with 32L home loan. It is 12 km far away from my husbands working place and children’s kendriya vidyalaya. Now kindly suggest the best profitable option ,1. Shift to new home to save 14k HRA. 2. Continue to live in qtrs, avoid travelling expenses and invest 6L lease amount in FD
hai sir i am 33y old, my baby girl was 18 months,i am saving for month ten thousand rupees,plz say best scheme from child education are marriege. thanku sir. karunakar sangisetty,khammam
invest in hdfc childrens gift fund
Akash, One should not invest in mutual funds targetted for children’s gift fund. These has been underperforming. One can invest in large cap funds for 8 to 10 years to reap the benefits of mutual funds.
more money means same time money & every year money and again get maturity on 20 or 25th year.
worthful information
Hi Sir,, pls suggest a best investment policy so that I wanna take for my kid. Requesting you to guide on this
Hi sir,
I want some plan which will help me in saving for my wedding.can you guide me with the same.but don’t need any loans.
D/Sir, I read your valuable suggestions very carefully, but while I decided to invest to any insurance company I have to go through agent only and they are always ready to misguide the unknown public like me. I wd like to know sir, is there any alternative way to invest without the agent. I mean individually. I am now 64 and wd like to invest some amount for the future of my grandson who is now 3yrs old.pl.give me a fruitful suggestion and oblige me.with thankAnanta Sarkar.
Appreciate your though process and care which you would like for your grand son. If you want to invest in any insurance product, better is to review it online with various websites / blogs. I keep posting reviews about insurance products, you can check. My advice is, instead of investing in insurance product, invest in mutual funds through SIP for 1 or 2 years (in case you cannot make fresh investments for long term) and keep these funds till your grand son grows and where he needs money for future education.
In looking for a plan which can be returned to me on 7th year onwards could you suggest which is the better option for me
I want to invest my daily earnings which I earn from my part time second job . I want to invest in stocks . like sip where investment is monthly or quarterly, is there any thing where we can invest daily??. Through online.
Respected Suresh Sir,
I decided to start SIP in KOTAK SELECT FOCUS FUND. My time frame is 15 years. I want to save for my child’s education. Is it right selection for me? Please give me alternative to above fund if above fund is not right selection for me.
Thanks.
any idea on only girl child policy of deposting 1 lac every year and get 1 cr at d age of 21 yrsr
I got a question that Mr and Mrs rajesh are planning to bulit a long term wealth for their child education and marriage, they can save Rs-5000 monthly and have 14 years time horizon which tradition instruments would you suggest.
Dear sir,
I am a mother of a baby girl aged 10 months. Working in a public sector enterprise. I want to invest in a best insurance plan which promotes savings as well as return and also having premium waiver benefit in case of my death. Kindly suggest me a good insurance plan to invest which can save my child future.
Hi Anuradha, Like in indicated in my previous articles, pls go for term plan first to protect your baby’s future. You can opt for various options in term plan. You would see one artilce on Monday about best term plans on this blog No.2, go and invest your money in mutual funds as your baby is just 10 months and you may need good amout by college time of 15 years. Invest in top funds like Birla SL Frontline or ICICI Focussed blue chip fund. If you can take some risk as you are investing for 15 years, you can invest in Franklin India smaller cos fund or HDFC Mid-cap opps fund
Mr. Suresh,
Please specify the basis for your following quotation:
“His expectation is that from 11 year onwards, he should be free from spending money for child education. He would get Rs 2.34 Lakhs per annum from 11 year onwards for 10 years”.
Thanks in advance.
Regards,
Dinesh S Shelatkar.
Hi,
Is there any short term plan. say for 5 years? Please advise.
Hemant
Dear suresh sir,
Last one month back I blessed with twin baby girls , please refer me best investment plan for my both kids
Mr Suresh
Regarding nsc IX for 10 years 1lakk per year after maturity, on what basis will get 2.34 lake per year could you please explain. Thanks for SSY for girl all ready started just because of your articals
Regards
Pmr
Mr.Suresh
Thank You
good think great time reach to me..
one more time thank you lot
i am not familiar bank or any funds u know still not yet open my insurance .
i am 32 years old.
give me ideas. i have 1 year son. my plan buy PPF. i am looking for who.
Hi Bala, Since you even do not have insurance, you need to start from basic in financial planning 1) Take term insurance plan from ICICI Pru life or HDFC Life. You can check for what amount you need the insurance 2) Approach fundsindia or ICICI direct for mutual fund account. Start investing in SIP’s in 3-5 schemes. You can invest in ICICI focussed blue chip fund, Birla SL Frontline fund, Franklin India smaller cos fund, HDFC Mid-cap opps fund etc., 3) Read my articles on various investmnet options. Based on your risk appetite, you can choose various investment options and start investing it.
Valuable info provided here. Nice work done…
Thank you very much Suresh sir
God bless you
Regards
Sagar
Nice post .. Some of the points were very practical and I think this is something every parent should think of before choosing the right investment. One thing I would have liked to see is the tax implication of some of the investment options, but hey I’m a CA so I will always expect that 🙂
Thanks RV. How is my blog. Do you find it useful. What suggestions do you give to improve our blog. If you found my portal useful, pls recommend to your friends on your facebook or twitter.
good one blog on child investment plans..thank u soo much to be share.
Anyone interested in taking LIC policy please contact me 8892530474/ 9964108498.
Tell me a best lic policy for child. Invest 15-20 k per annum
Quotes
Mail me at
my 2 child age 3 and 10 months baby i need invest for long term i have term insurance 1 crore S.A i dont have children plan i invest 3K p/m any new idea best plan insurance or SIP ?
There is nothing like best insurance. You need to have adequate insurance and spend less premium for that. For investments, better to invest in mutual funds through SIP. You can invest in large cap, mid cap and balanced funds indicated in this article. https://myinvestmentideas.com/2014/12/top-10-best-sip-mutual-funds-to-invest-in-2015/
Nice article sir.
However, I would think ULIPS fare better compared to NSC and RD since both these products (at least some portion) are taxable. Whereas maturity proceeds from ulips are exempt from tax u/s 10 (10D). Please correct if am wrong.
Of course, I have assumed a time horizon of 20 years and also assumed that ulips will give a gross return of 8% ( higher end of the band as prescribed by IRDA). Premium allocation 50% towards Large cap funds and 50% towards mid cap funds.
I have done a calculation for 20 years policy term and 10 years premium payment term. Annual premium Rs. 1,00,000/- and I arrived at figure of Rs. 22.80 Lacs on maturity. Also, the investor gets insurance cover of upto 10 times the annual premium and if some unfortunate event happens resulting in death, all future premiums are waived along with death benefits being paid immediately, the policy continues and proceeds will be given to child at the end of the policy period.
Although, I admit that proceeds will be available only on maturity and there won’t be any continuous cash-flows after 10 years as in case of nsc (the option of partial withdrawal after 5 years is available in case of ulips though)
Please assess my understanding
Thanks.
You are correct from taxation point of view. However you should look at returns. If your 100% investment would yield 8.5% returns which is taxable or your 90% investment yield 10% returns and balance 5% to 10% is eaten away by insurance companies and brokers. Who is stopping us to take term insurance and balance invest in bank FD/RD? Your benefits would be higher right?
Very informative…thanks
Nice Once Blog .. Thnak You so much for this informative blog.
Good one.Thanks.
Hllo sir, I have 2 daughters pl suggest me best plan for my children. Thanx
Hi Janak, Have you gone through the article. These are various ways where you can invest for your children.
To all querrys it is suggested calculate yoiurself on the basis of intt available at any given point with banks/organisation of repute.
It is my observation No organisation wants to assist parrents by offering extra intt payable to child say from age of 2 to 5 onwards for a long time point of view.
20 L , wont be sufficient after 15 years… Plan around 35-40L, as I am searching for the same.
good one article.
I am 35year old and hve 2 yrs old child,after 15 year ,want to 20 lac,plz suggest me .
Good article! I have 2 kids 12 yr son and 8 yr daughter . We haven’t done any investment so far. Kindly suggest a plan.
Sir I am 31 and mine daughter is 6 months old. I want to invest keeping in mind her education(approx after 17 yrs or 20) and marriage(approx after 25 yrs). example would need 15 to 20 lac and 40 to 50 lac respectively for the two events respectively.
thanks a lot sir
Hello friend,
I was just wondering if is there any good plan for adults like am 28 now and like to put some investmet about 20k per month for may be next 5 – 7 yrs to secure myself and see my family in the future spendings. Pls suggest with the policu names and bank’s in india. Thanx
First take term insurance plan. Second invest in mutual funds.
hi.. my daughter is 3 yrs old and i want to invest in a best child education policy but i dont know which policy is best… i expect a sum of amount on her 18th year so that we can use it for her higher studies… pls guide me which plan suits my needs!
Thanks Suresh a TON
To start with I am looking at investing in Kotak Life XL with the sole purpose of savings for my family needs with a premium payment term of 10years.Also I don’t have much idea on MF & hence need to explore possible options.
BTW I am looking at SBI life new plan “wealth builder”,not sure though it will meet my requirement.
Pl do give your expert advice on both the options as I would like to avail IT 80C benefit as well
Hi Suresh,
We are blessed with son, and would like to start the saving.
I find the investment through SIP in mutual funds is yielding more returns. Kindly can u suggest some good plans in market.
I am also planning to open a RD with minimum of 1000 and other options of PPF also.
I would also be very thankful if you can suggest some good retirement plans for me. I am currently 33 years old.
regards,
Vidyaranya
You can check below article and invest in large cap and balanced funds. https://myinvestmentideas.com/2014/12/top-10-best-sip-mutual-funds-to-invest-in-2015/
Hello Suresh
My daughter is 9years old now & I have not availed any child savings plan so far.Hence I am looking for a savings plan which can be quite useful to meet my kid’s educational & marriage expenses say in another 10years time frame.
Considering that I have started late is there any 10 -12 year plan which will be useful here for my requirements or should I look at one time lump sum investment to get the benefits in another 10years from now?
Do advise pls on available options to meet my requirements
Sikkander, Like I mentioned in the article investing in one option may not suffice. You can look for investing in mutual funds, recurring deposits etc. This way you are diversifying your portfolio. You can look for large cap and hybrid mutual funds to invest in MF segment.
Thanks for this article! Could you please guide me on the SBI Life Smart champ plan? Is it a safe investment for my child?
Thanks!
This is simple child plan. However returns are not guaranteed. Instead you can look for mutual funds as you would be investing to 10-15 years
hello suresh
my father have 1 L ruppes put in FD for 1 yrs . other than is he dont have money. FD is compartable for him or shall we put on MF
regards
manivannan
Your father might be retired. It would be ideal for him to put in FD that too in Senior Citizen Saving Scheme FD scheme where he would get 9.5%+. You can continue there.
i have invested in from last one year sbi global magnam fund and sbi emerging fund reglar plan growth in SIP method. Shall i continue this fund or go for other pl. give advice.
regards
mani
Continue them
sir,
i would like to invest in NSC 50000/year in 10 years. From 11 th year also how much can i get return?
reards
gopinath R
You would not get any seperate returns. Your NSC would have a maturity of 160 for every 100 invested. Your 50K would go to 80K on completion of 10th year.
Dear Mr. Suresh,
I would like to know about invest plans in which i can deposite according to the availability of the money in my hand. I would like to keep the lock in period as 5 years to 8 years. kindly suggest .
my child age 2 month my child broad future, education and marriage
i am suggest sir please
Invest in mutual funds through SIP. You can review the following funds. Quantum Equity fund, ICICI Focused blue chip fund, Birla SL Front line, HDFC Top-200 fund etc.
Dear Sir, my son’s age is 7 yrs and for his higher education need to do some deposit now and planned to start with Rs. 5 lakhs now and pls give yr suggestion on plans
Hi Suresh,
Kindly suggest me some good investment tool for my child. She is of 1 yr age and we are planning to invest 1,00,00 Rs for her for minimum 5 yrs of lock in period.
Please suggest me best option among above all i have seen.
Regards.
Paridhi, All options indicated here are good. You should select based on your need
Hi Suresh,
I had read your other article on NSC option and from comments I am bit taken back on its plans as it looks like it will be difficult to encash amount on maturity if you loose that Certificate or if you move out to other city/state. Is their any plans from govt on digitizing it.
Thanks,
Murali
I hear this is in process, but let us not expect this. Instead, invest in PPF account which is online and you would get similar interest.
Hi Suresh,
I been reading your blog for long time.I want to gift 10k for my niece on her 2nd birthday.Gift should be in the way of savings scheme to her.I don’t wanna block in FD and no plans to take 10k for minimum 5 years.Am quite new to Mutual fund although i have Demat account.
Please advise me what are the ways i can block 10k which will yield maximum returns in 5 years and note that there can be irregular additional investment as well.
Vani, Considering your request, you can opt for PPF. You can open PPF in your niece name and start depositing as low as Rs 500 per year. If you have higher amount, you can invest up to Rs 1.5 L. You can get 8.75% tax free interest. However the option is for 15 years and not for 5 year. Alternatively you can open VRD / Flexi FD scheme. You can deposit as low as Rs 500 per month and no max limit.You can get 9% approx interest rates. If you want to invest in MF, you should do through SIP every month. Since you do not want to do this option, you can check for PPF or VRD/Flexi RD scheme
Nice Article…. !
After your article thinking to save for my niece(2 years old), can you help me which is the best plan in today’s market to invest approx 10k Per Annum for 15 years and approx expected returns after maturity, Am newbie in investment and looking for low risk
Your efforts are “Highly Appreciated”, Thanks
Hi Soori, Like I indicated, one of the best investment plan for children is investing thru SIP in mutual funds. You can invest in balanced funds like ICICI Balanced fund or HDFC prudence funds (Rs 500 each per month)
Hi Suresh
Very nice article thx I think for parents who are not well versed with stocks should go with secured and balanced funds which is good the only drawback is in ppf if parent and minor has account the limit of 1.5 Lakhs is for both accounts put together but if one doesn’t have ppf an excellent opportunity to open one
Do you suggest any good balanced funds for 10 year horizon for sip of 5000 ?
Thx and reds
Jagadish
You can invest in balanced funds like HDFC prudence or HDFC balanced fund or ICICI balanced funds
Dear Suresh, Thanks a lot for your valuable feedback., My daughter is 8 months old now and I have started looking for few investment plans. When I visited the SBI bank, they have offered 2 plans namely, ‘Smart scholar plan’ and ‘Smart Money Back Gold plan’. Actually I am confused with these plans. Hence may I request you to suggest if I can go with these plans?
Thanks in advance
Sharath
SBI Life Smart Scholar Plan is ULIP and SBI Life Smart money back gold plan is money back plan. You should stay away from such plans. 1) Take term insurance plan 2) Invest your savings in bank RD or mutual funds through SIP. These are best way of saving money
i am palnning to invetsing for my 11 month old boy.Can u please advice me which one is suitable .
cuurently am planning to join either hdfc gift fund(ulip) or hdfc child investment paln
Sajith, Invest in large cap mutual funds
Central Govt. has re launched Investment plan for senior citizens " Varishta Pension Bima Yojana" with attractive interest of 9.38%.
This is in collaboration with LIC of India.
Additional advantage than FD's are Loan availability and fixed interest rate ,risk free.
Hello sir,
I am investing in money back policy of LIC since last 4 years. The premium is 36 thousands annually. Now I want to invest in mutual fund. Should I surrender my LIC policy and go for mutual fund with separate term insurance. Please advice. Thanks.
Dear Suresh,
i also very new and wants to save for my child education and future so i need your advice and i have taken three insurance policies in LIC and one Endownment policy from Exide life and one Mediclaim from Apollo Munich, and now iam thinking that i wasted so long time( 7years) in investing in the above mentioned insurance policys, so please suggest me the best investment plan with good returns.
Pls invest in mutual funds. Invest in largecap or diversified funds like ICICI Pru focussed blue chip fund,HDFC Top-200, Birla SL Frontline fund, BNPP Equity fund, UTI Opps fund and Quantum long term equity fund. You can pick any of these funds.
Hi,
How can be term insurance become investment for child. There is no maturity amount for term insurance.
Sahadev, I have just modified the sentence. What I meant is consider addl term insurance and balance invest in other investment options. This way you are ready today as well as during 15/20 years when actual requirement is there.
Suresh ji,
well educated reading your articles. i am 43 very late starter for saving.have two LIC Policies , term insurance of 4 lakh & mediclaim.80c is not met fully .have some 50 k extra to invest.thinking of saving for child who is 11 now plus tax saving.
should i go with tax saving fd? which bank?
or any other option?
Hi Mohit, You can take any large private bank tax saving FD. All of them are now offering 8.75% interest rate. This way you would met 80C and get good interest.
Thanks Suresh for valudable advice. This article reaffirms my belief about investment.
Dear Suresh
Nice Article giving good visibility on Child Invetsments. Thanks a lot for such an great article.
Iam new to Stock/Mutual Fund Investments. I have been reading you article continuesly for past 3months
very informative and helpfull. Keep up the good work,,
Thanks
Nagarajan.PL
You should have written this article with heading, "5 Best Child Investment Plans in India" because the 6th point is just useless i.e. ULIP. ULIP should be closed permanently. It's just useless, it's better to keep money in Savings Bank Account of YES Bank; atleast, they give 6% interest rate & 7%, if balance is above 1 lakh.
I hate ULIP; I incurred loss of 1.25 lakhs because of the same; just 4.5% final interest rate whereas Banks were providing interest rate of atleast 8% that time.
Hi Mohit, I understand your concern. This blog is read by 8000+ people every day. 80% of this would believe what I and you believe. But 20% still does not believe about stocks, mutual funds, NCD’s etc., For them, safest investment is insurance policies. I am trying to educate such investors too about the negative points from ULIP’s. However this may not happen immediately. If you see out of 6 options, I kept this as 6th point and see my first line and last line under this 6th option. I have indicated that one can look this as last option and I am not in favor of this. If any of the 20% of my readers read first 5 points and read 6th point and vote for any of the point 1 to 5, my objective is met. This is where I am coming from.
Dear suresh my request is please don't tell agents cheating with ULIPS. we are not that kind of agents. What ever you are suggesting a 6 good child investment plans in india this method I am using from last 2 year of my LIC agenct career. If any one of the parent looking
to buy an child investment plan I am suggesting first term plan and then we are allocating their investment as a 10% equity, 50% ppf, 10% MF, and remaing in Debt fund, some of the people they are not wish to invest in MF and EQUITY, so in that case also I am educating them with inflation, and past performence of the market and then we are convincing the customers.
And also you are telling ULIPS ARE GIVING ONLY 6% RETURNS, pleaee check out the NAV of the market plus policy from LIC
Hi Srinivas, When I say agents are cheating, I am telling about those who are making money with throwing ULIP’s on investors face and never looking at them. Since markets are up now after 5 years, some of the ULIP schemes might be showing some good returns.