Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.
A Mutual Fund is a financial vehicle in which a group of investors can pool their money and invest in a wide range of securities such as bonds, stocks, gold, money market instruments, and other assets to obtain capital returns over a period. Mutual Fund companies or an investment professional called, a fund manager or portfolio manager, handles investors' money. He chooses the best mutual funds to invest in, based on risk profiles and financial objectives. Then, Mutual Fund allows its investors to share the collective gains (or losses) on the investment in proportion to their contribution to the fund.
Mutual Funds are one of the excellent ways which will help you earn good returns to secure your child's future. Choosing mutual funds investment plans to build a large corpus will help you give the best future for your child.
As a parent, you strive hard to keep up with the current needs of your child, but as much as you try to meet your child's present happiness, saving for your child's future can often seem to be less significant. Considering the inflation rate of education, you must save money for your children. It is better to be financially ready than to face challenges later in life. Investing in Mutual Funds will benefit you in the long run, help you gain great returns, which your child can use for education, wedding, or business in the future.
Mutual Funds for your children are beyond the traditional saving method that enables you to beat inflation and offer much better returns depending on your risk and investment horizon. Before you start investing in mutual funds, you need to understand every type of mutual fund and choose the right that suits your investment objective. There are different types of mutual funds such as Equities, Debt, and Hybrid.
Choosing mutual funds for your children will let you save for the future of your child. You have time till your child is 18-20 years old. With the inflation rate, there's a possibility that the cost of education could go up very high from lakhs to crores by the time your child is grown enough. So, your investment objective includes three features - a long-term range, a big target, and no necessity for instant cash flows. By understanding this, you can select the suitable type of mutual fund and the right scheme for you.
There are many types of mutual funds. Before you choose top mutual funds to invest, you should consider various factors such as the final corpus you need, your risk appetite, your need for returns and your time range.