Parents try all means within their capacity to give the best to their children, including good education and health. Parents want to accumulate a sizable corpus to ensure the best quality of education and life for their children. This can be done through child investment plans.
While it was easy to plan for education earlier with fixed deposits and public provident funds (PPFs), the contemporary times demand a more disciplined approach that should ideally include specialized child investment plans. As these schemes generate income mainly from mutual funds and stocks, they provide higher returns on a long-term basis. A long-term approach is needed because children-related expenses do not end with day-care and school/pre-school fees. Parents need to keep building a separate fund to meet children’s other needs like higher education expenses.