The Best Investment for Children in India

Investments are important for one’s future and when it comes to investing for the children it becomes all the more essential as there is a great need for money for higher studies and also to land up a high profile job. Therefore it is important for the parents to make the right kind of investment to secure the future of their children. These investments not only come to the aid of the children but also to the parents as there is least chance for the arising of financial constraint. Keeping these requisites of the parents in mind there have been many investment plans that have been fashioned.

  • Most of the investment plans for children suggest the investment being made by the parents while the children are at very early an age as the expenditure on the education increases by the day. There are various options that the parents can choose from and the only thing the parents need to know is where and how to invest money.
  • Apart from the parents making an investment for the children, the parents can also instruct the children to make the investments on their own and teach them how to invest money at the right time and at the right place by letting them own a saving account and having their monthly allowance saved for the future.
  • When it comes to the parents handling an investment account for their children focusing on the long term investments is a must. There are paper saving bonds which can have the invested amount of money within a particular course of time.
  • The insurance companies in India provide a long term investment options which enable your children to have their future secured. But the disadvantage with these investment plans is that the investment returns are low and also sometimes expensive too.
  • Mutual funds also make a good option for investment for children. The more the mutual funds are diversified more is the mix of risks and the investment returns. But in order to gain profits from mutual funds they need to be managed in a professional manner.
  • One of the best long term investments for children is annuity where you can make a principal investment of certain amount and later add smaller amounts to it either monthly or annually. This kind of investment comes in handy for the purpose of higher education of the children. The best part of the concept of annuity is that the amount almost remains uniform throughout the time of the annuity.
  • Investing in precious metals like gold and silver is also another exceptional idea for the security of the children’s future. This is because of the soaring prices of gold and silver day by day. India is a country where the precious metals have a great demand especially for the girl children as there is a need for the dowry during the wedding.
  • Getting kid friendly stocks as gifts for the children is also a good idea so that the children can get to know about handling stocks and about the money investment that is involved in it.
  • When the children are taught about the investment from a young age, by the time they grow older, they will have a complete knowledge of the investment market and how it works.
  • Demat accounts are also considered one of the best investment options for children especially for the sophisticated investors who have huge interest in investing in stocks. You just need to open a demat account in the name of your child and keep investing in it thereby accumulating the quality stocks.

Author Bio:

Caroline Leah, the author of the above article is a keen blogger and has written many articles related to mutual fund investment and online marketing strategies on different websites apart from writing articles on how to earn money online.  For more details contact her at

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