Solution Oriented Mutual Funds are a good investment option for a child’s education.
The category return of Solution Oriented Funds has been 14.9 per cent so far.
Some solution oriented mutual funds also offer the benefit of tax exemption.
New Delhi. Due to the ever-increasing inflation, nowadays a lot of money is being spent on education too. Giving good education to their children is the most important responsibility of every parent. Therefore, financial planning for the child’s education should be done very carefully, so that further lack of funds does not come in the way of giving good education to the child. If your intention is to make a huge fund for your child’s education, then you should invest in mutual funds. This is because mutual funds have always given inflation-beating returns.
According to a report in Live Mint, Abhishek Dev, Co-Founder and CEO of Epsilon Money Mart Pvt Ltd, says that there are different types of mutual funds available in the market from today. Therefore, choosing mutual funds for the education of the child is not an easy task. The choice of any scheme should be done by the parent keeping in mind some things like after how much time the fund will be needed and what kind of education the child will do.
Invest in this fund category
There are many categories of equity funds. One can choose between Large Cap Fund, Midcap Fund, Small Cap Fund, Large Midcap Fund and Solution Oriented Mutual Fund. Abhishek Dev says that Solution Oriented Mutual Funds are better for the child’s education. According to SEBI, there are four categories of Solution Oriented Funds – Retirement Funds, Index Funds, Children Funds and Fund of Funds. The children fund category has a lock-in period of 5 years. Or money can be withdrawn from it when the child becomes an adult.
Abhishek Dev says that Solution Oriented Funds are operated by big AMCs like Aditya Birla, ICICI, SBI and Tata who operate these funds. The category return of Solution Oriented Funds has been 14.9 per cent so far. Abhishek says that one should invest in these funds through Systematic Investment Plan (SIP).
FIRST PUBLISHED : September 13, 2022, 14:23 IST