Using Mutual Funds for kids education
Recently I have been watching a lot of reels on saving money using Mutual funds. There are many mutual funds available and picking the right mutual fund is very important to make sure it is performing well. I have a small amount of money invested in Mutual funds and some money in Bank fixed deposits just to be safe about my investments. I recently saw a video where they say saving the money in mutual funds can take care of the complete educaation needs of a child.
The idea is to invest 10 Lakhs in mutual funds when the kid is born. This way when the kid is at 5, the amount can give a decent value that would be suitable for starting the education for the kid in their Kinder Garden. Later as the money requirement increases, the compounding also increases and this way we will be able to withdraw more money from the mutual fund making sure the kid is completely covered for the educational expenses. A simple calculation done with this gives a better idea as to how much money exactly we would be getting.
Picking the right mutual fund
Picking the right mutual fund is crutial here because not all the mutual funds are top performing funds. Some people just save the money in banks and watch them grow or make sure that they have saved their future. Some mutual fund might give high returns but they might as well have high risks. Picking a mutual fund that has moderate risk and is performing well for a decent amount of time is a good thing.
Withdrawing at the right time
If we speak to many people, mostly people just invest in the mutual funds and don't think about taking the money out of withdrawing the money. I recently installed an application through a referral from an instagram reel where it suggest if the mutual fund that I'm holding is a good one to hold or not. If the mutual fund is not performing well, maybe it is good to get rid of it and invest on something that is performing better. There are many such applications available where we have to just enter our pan card number and it would analyze our portfolio and tell us the status of the mutual funds that we have. These applications also suggest good mutual funds to invest and they inform us if the mutual fund is performing well or not performing well. This way we will be able to adjust the portfolio.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
 |
 |
 |
Posted Using INLEO
I recently came across a post on Facebook where the guy was talking about mutual funds and it's benefits, I was thinking of checking it out, then seeing you post about it, means I should really hurry up to check it out
You should check mutual funds definitely.
I definitely will, thank you 😌
Mutual Funds are still GOAT, although mine has taken a hit recently but it's rising. 🍻
I think the better approach should be instead of putting everything into one fund, diversifying it into various AMCs and class based on risk assessments would work better.
Great topic. Planning for education costs is one of the most important financial goals for any family.
The lump-sum investment idea is interesting for its potential for maximum compounding. I'm curious about your thoughts on how this compares to a Systematic Investment Plan (SIP) strategy, where one invests a smaller amount monthly?
SIPs can average out the purchase cost over time and might be more accessible for many families than a large initial investment. Do you think one method has a clear advantage over the other for this specific goal? Thanks for getting this important conversation started.
I think Money Market Funds is the best for passive investors in Nigeria with the current rate at 20%.
Mutual funds are a way to actually earn passively and with compounding interest, one can actually earn big over the years
A 529 is usually the best possible investment you can make for a child. I am not sure if there is anything similar in your country.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited..
This post received an extra 20.00% vote for delegating HP / holding IUC tokens.
Congratulations @bala41288! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCurrently now it is actually the best most especially in Nigeria and it will help to safeguard the future of the children