“Securing Child’s Future by investing: A Walk through to Mutual Funds for Children’s Better Future”

There’s nothing much pleasing than seeing your child growing. Therefore, parents make sacrifices and investments to make their child’s future secure and better. One of the ways to secure the better future of their children is to provide them good education. Nowadays, providing good education for your child can be a very difficult task, especially with the surging expenses of education. Traditionally people saved by investing in conventional instruments like fixed deposits, gold or even buying land as means to secure the future of their children. Though these investments are safe investments but these hardly beat the inflation. One of the most efficacious ways to secure your child’s education in future is by putting money into equities because equities have continuously generated high returns, beating inflation and help building substantial wealth. Let’s explore how a layman can invest in equities. For a layman the most suitable avenue to invest in equities is through Mutual Funds. Now why Mutual Funds:

1. Easy to Invest: It is very simple and flexible to invest in Mutual funds. You can even start investing with a small amount of Rupees 500 a month regularly to build a large corpus of fund without any stress. This regular habit of investment ensures that market fluctuation work in your favour as ups and downs in the market are averaged.
2. Professional Management: Mutual funds are managed by professional fund managers. They use their expertise to generate optimum returns with minimum risk. Hence, you get professionalism by paying a nominal fee.
3. Diversification: Mutual funds invest in various kind of well-run companies thereby spreading the risk across large number of companies and providing the safety of diversification.
4. Liquidity: MFs offer flexibility, allowing you to extract funds anytime you need.
5. Taxation Benefits: Any investment remains invested more than a year in mutual funds attracts capital gains tax on the profit generated on the investment. The taxation on the capital gain is @ of 12.5% which is the lower than profits on other types of securities.

Investing is a good habit better to start it as early as possible….