5 Steps To Secure Your Child’s Future Using MFs
When it comes to the future of your child, you do not think twice. You will do whatever it takes. You can build it brick by brick and one step at a time without hurting your finances.Mutual funds are a way to go.
1 Set Goals
You must know the purpose you wish to save and invest the money for. It could be an international school admission or a professional degree at a university. Set your sight on a figure that will ensure your child gets the education he or she wants.
2 Save More
Once you know your goals, set aside some money for this goal before you spend the rest. It is important to get into a good saving habit every month as the stepping stone to secure your child’s future.
3 Start With SIPs
A way to get into a discipline of investing is by using SIPs. Systematic Investment Plans or SIPs help you use ‘rupee cost averaging’. This means you buy more when prices fall and buy less when prices rise. You can start with as little as ₹500 every month.
4 Use SIP Booster
As your income grows, you can boost your allocation to SIPs by using the SIP Booster. This increases the amount you set aside each month for your child’s future. A timely boost every month can make a significant difference to the final amount you receive when you need it.
5 Do Not Stop Investing
You must continue your monthly MF investments till you meet your goals. If you stop investing for some reason, figure out a way to quickly replenish the child education kitty. The more you stay away, the more you hurt your prospects of reaching your goals on time.
It makes sense to allocate your SIPs to diversified equity funds. Your money grows along with your child. To reap the benefit, you need to give your money that much time.