How to select the best mutual funds for child education plans?6 min read . Updated: 13 Sep 2022, 11:10 AM IST
- In terms of personal finances, it appears that financing a child's education is the most crucial responsibility that cannot be neglected.
In terms of personal finances, it appears that financing a child's education is the most crucial responsibility that cannot be neglected. When making financial plans for a child's education, a person may aim for greater return investments with reduced risk. In this case, mutual funds are the best investment choice since they have a history of exceeding benchmark indices and inflation in terms of returns. Before investing in a mutual fund, parents should take into account a number of other factors in addition to starting savings as soon as possible, such as the child's age, educational route, investment horizon, capacity for accepting risk, asset allocation, and capital accumulation for children's future goals. Fixed deposits are the standard means for long-term goals, but due to rocketing inflation, the RBI increased the repo rate by 50 basis points at its MPC meeting in August, which caused bank fixed deposit interest rates to increase.