3 Best Investments for Child Education Plan

Growing inflation rate has resulted in the cost of basic necessities to increase by leaps and bounds. Therefore, it has become important to invest your money wisely to get financially secure and let the money grow for future requirements.

For any parent their child’s education is one of the top priorities. Providing your child with good education is one of the major steps in helping them fulfill their dreams.

The cost of education has witnessed a rise in the past few years. Moreover, with COVID-19 knocking on our doors unguardedly, providing education to your child in such a scenario may seem quite expensive to parents. Therefore, investing for your child’s education has become important as well as a good solution to prevent any sort of financial hindrance.

Some of the Best Investments for Child Education

Following are some of the best investment plans for child education:

1. Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plan is one of the best investment plans for child education. It is a long-term investment plan wherein the investor pays a certain amount as a premium at regular intervals and in return, the insurance company provides life coverage and invests some part of the premiums paid into the market.

In this plan, a certain part of the premium paid by the investor is dedicated to insurance purposes for providing life cover. The remaining part of the premium is invested towards shares, equity, bond, etc. ULIP not only provides life coverage to the investor but also invests the amount for money growth. Thus, ULIP helps you financially secure your child’s future as well as help him achieve his dreams.

2. Public Provident Fund (PPF)

Public Provident Fund (PPF) is another effective plan that you can consider for supporting your child’s education. PPF is a type of long-term investment plan with a minimum tenure of 15 years. PPF is a safe and low-risk investment plan that provides good returns.

In this plan, the investor pays the premium amount at decided intervals. At the time of maturity, the company will provide a certain amount of money to the investor, including the amount earned on interest rates. By choosing public provident fund, parents can invest during their child’s early age. This way, they can use the returns from the invested money upon maturity.

3. Mutual Funds

Mutual funds are also considered one of the best investments for child education that parents can go for. Mutual Fund is a type of investment plan wherein the money of various investors is collected and invested in the market in the form of equity, bonds, etc. How much money the investor will get in return depends on the performance of the units in the market. Though there is an involvement of risk in this plan, the returns are usually high.

Investing in Mutual Funds is beneficial to the parents as the returns that the investor gets are normally good, and as a result, saving and planning for a child’s education is high. Moreover, the money invested by the investor is professionally managed, and the investor has a vast choice as to where to invest his money.

Conclusion

Every parent’s dream is to see their children achieve their dreams and goals. Education is one of the initial steps in helping your children achieve their dreams. You can go for life insurance companies that provide insurance policies catering to your needs and priorities. Some companies also provide various benefits such as health and tax benefits, lumpsum cashback, etc.