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A Best Mutual Fund for Your Child - ICICI Prudential Child Care Plan-Study Plan

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by: No more debt !
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Date: Sun, 10 May 2015 Time: 10:31 PM
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Children Education is one of the most important financial goal for every parents. Many of us start investing into a Bank FD or LIC Policies or any other Endowment Policies for Children education. However, this is one of the most common financial mistake that most parents do. Because Bank FDs or Insurance policies will not yield inflation-beat returns to you and might not sufficient to manage your child educational or any other needs. So, what is the best way to invest for your child with safe and high return expectations? You must have heard that Mutual funds are the best way to create wealth over the long term. But all Mutual funds are suitable to invest for your child? We will see the best Mutual fund to invest for your child in this article.

Childcare+Plan-2

Why Mutual Funds are the Best Product for Child Investments:

  1. History revealed that the Inflation-Beat returns are possible only with Mutual funds for your long term investments.
  2. Mutual Funds are an attempt to inculcate long-term investing discipline in Parents
  3. You can invest as low as Rs. 500 monthly (SIP approach) which is quite affordable to many parents.
  4. Tax will be imparted only when you redeem the Mutual fund units. 
  5. Lower Maintenance cost
  6. Many resources are available to verify the track record and to choose the right Mutual funds

The Best Mutual Fund for Your Child:

Investing for child planning is always a grave concern for parents. Due to emotional attachment, they are lured with all kind of products in the name of child future and so at times it's difficult to choose the right option. Insurance companies have been long selling their child plans with some additional features than a normal insurance product. Many parents are making mistake here. Always choose Mutual funds route for your Child care planning. After studying many factors, the ICICI Prudential Child Care Plan - Study Plan is the best option for your Child education.

Why ICICI Prudential Child Care Plan - Study Plan?

  1. ICICI Prudential Child Care Plan - Study Plan is Debt oriented Balanced Mutual fund
  2. Un-beatable performance from the last 5 years
  3. Continuous 5-star rated by ValueResearch
  4. No tax on your corpus when you redeem after 3 years
  5. Reducing Repo-rate cuts by RBI would yield more returns from Debt funds in the coming days
  6. Higher ratio of Debt component ensures the safety and the Equity component ensures the higher returns

About ICICI Prudential Child Care Plan - Study Plan:

This plan is aimed at providing steady income through a fixed income portfolio with limited allocation to equities. The equity allocation of the plan will not go beyond 25 per cent, somewhat similar to an open-end Monthly Income Plan. This plan is suited for an investor seeking regular income for his child education.Almost 75% of its assets are allocated in Debt, less than 25% in Equity and the remaining in Cash. The top 5 equity holdings consist Motherson Sumi Systems, Natco Pharma, Indoco Remedies, Sterling Holiday Resorts, Balkrishna Industries. Because of the RBI's Repo-rate cuts, the fund performance has been zooming to 30% from the last 1 year and will assure the same performance levels in the near future as well. See the following chart about the fund performance.

 

Childcare+Plan-1

 

Conclusion:

Planning for child future is full of emotions and you do not have a choice to defer it. But for any long term investments a careful thought needs to be given on various factors which can affect your decisions. Choose ICICI Prudential Child Care Plan - Study Plan for your child which would give highest returns blending with safety.

About the Author

I am Ravi, live in Hyderabad, India. I am passionate about Personal Finance and Investments through Mutual Funds. I have written many articles on Personal Finance for Youth and Students in India. I would like to bring exposure to Savings and Investments among the Youth and Students in India...

http://www.myinvestmentspub.com


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