If savings are good, investment and planning are better. If you are thinking of investing in your child’s future, the need can change at different ages. At the same time, you need money for basic education, training objectives, short-time education activities, money for higher education in the middle of the time, spending on reading away from home, spending on marriage, etc.
Investment objectives for less time:
If your objective is for a short time, you can opt for fixed deposits, recurring deposits, debt mutual funds (3 to 5 years). There may be instances for a short-term purpose when you need money on an urgent basis, and if you have chosen assets that have a lock-in period of more than 5-10 years, it will be difficult to arrange money immediately.
What to do for the midterm objective:
Investment options such as equity mutual fund scheme, public provident fund, the stock market (if willing to take a little more risk), tax-saving fixed deposits are better for medium-term purposes (5-10 years). PPF has a lock-in period of 15 years. However, you can apply for partial withdrawals after completion of six years, and you can also apply for a loan against the PPF deposit after three years.
What are the long-term objectives?
There are PPF, Sukanya Samriddhi Account, and national savings certificate for long-term purposes (10 years and more), plus many other long-term investment options can be chosen. You can take the help of a better financial advisor if you want.
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