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Business News/ Money / Personal Finance/  Monthly SIPs, gift fund & more: Edelweiss' Radhika Gupta's guide to investment plans for children
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Monthly SIPs, gift fund & more: Edelweiss' Radhika Gupta's guide to investment plans for children

Radhika Gupta of Edelweiss says parents should create a bank account and start monthly SIPs for children in order to plan correctly for their higher education expenses.

Radhika Gupta, CEO, Edelweiss Asset Management Company Ltd, photographed in Mumbai. Photograph: ABHIJIT BHATLEKAR/MINTPremium
Radhika Gupta, CEO, Edelweiss Asset Management Company Ltd, photographed in Mumbai. Photograph: ABHIJIT BHATLEKAR/MINT

With the rising expenses of higher education in India, financial planning for parents has become a priority, in order to provide quality education for their children. Early planning in terms of where to allocate your funds for children gives more time to consider different investment avenues and develop a reliable investment strategy.

Systematic Investment Plans (SIPs) is a popular tool for reaching long-term financial goals for funding children's higher education. Radhika Gupta, CEO, Edelweiss Asset Management Company has listed some quick and easy methods for parents so that they start investing for children at an early stage.

Also Read: Mutual Funds: Can small SIPs help you save enough for children's education?

Gupta took to social media platform ‘X’ and listed the following plans:

‘’On popular request, some quick thoughts on investing for a child,'' said Gupta. These are as follows:

1. Get the docs done - birth certificate, Aadhar, PAN and then bank account. Actually very easy to do for a minor.

2. Try to find a goal - higher education is one - to save for. Break it down into the number of years you have to figure out an investment amount.

3. Do monthly SIPs. 2-3 funds work. Can use a large / mid index fund for broad market exposure, mid and small cap funds to add risk, and an international fund if you are thinking study abroad to manage currency. ,94 those who asked you can do all this without a children’s specific fund like gift etc.

4. Review this periodically as goals change, make it more conservative as you get closer to the goal. Involve the child in the process as they are old enough to understand.

5. This isn’t a perfect process and you can easily create your own. But it’s enough to start. Finally encourage those who gift to gift units or SIPs to kids. I know the pain of having three ball pools and four strollers as gifts and storing them in a Mumbai home. Financial gifts are productive and take less space.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 30 Mar 2024, 06:20 PM IST
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