InvestorQ : My daughter is 1 year-old, when shall I start saving or investing for her future?
Siya Saran made post

My daughter is 1 year-old, when shall I start saving or investing for her future?

Answer
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Abigail Ghoshal answered.
8 months ago


The first thing that you need to know is that you are not late, your daughter is just 1 year old and you’ve thought of investing at the right time. As you have a sufficient period of time of about 17-18 years for her higher education to begin.  You can not only plan for higher education but also for post-grad education and maybe a wedding too.

If you’ve started investing way back or just at the time of your marriage would have been a lot earlier and might have complexed your investment rather than simplifying it. 

Now before you begin investing, just make sure that what you are willing to keep aside every month, quarter or year and then decide the lump-sum amount that you will need after 17-18 years.  This will help you to keep track of your earnings and would simplify the investment for you. Since you are ready with your investment objective, you can consider options for investment. There are various options available that provide attractive returns on your investment and are moderately safe. 

You can invest in PPF, low-cost equity fund, hybrid fund or you can choose a mix of all. Since you are fortunate enough to have a daughter, you can also invest some money in Sukanya Samriddhi Account. However, it has some restrictions on withdrawals. So, make sure you have gained a good knowledge of the fund before investing in any.

If you are not sure about how to invest and how much to invest, you can take the help of professionals, who are generally fund managers. They will help you to manage your fund, and if necessary will design a portfolio that will suit your needs and would be the best alternative to meet your investment objectives.