Tuesday, September 23, 2008

Investing for my daughter

a GUEST wrote :
I would like to start a SIP of Rs3000 per month for my year old daughter. Pls suggest if I should go in for a childrens plan, ULIP or MF & which one. I also want to invest a sum of Rs one lac for her. Pls help as I am confused with all these investment plans.

Dear friend, First of all Insure ur life thru pure term plans as per ur requirement say 10L or 15L or 20L to avoid derailment of ur planning for ur daughter if anything mishappens to u. the money received from Term insurance 'll be there to fulfill ur dreams in ur absence.

Plz. for ur own sake, don't buy any so called Child Ins. plans. Plz. keep the insurance & investment things distinct from each other. For Insurance I already advised to take Term plans.

You can consider investing in the following funds for maximum returns after you have adequately covered by Term Insurance.
500 * 1 sip in fidelity Equity Fund
500 * 1 sip in HDFC Top 200 fund
500 * 1 sip in Reliance growth fund
500 * 1 sip in sundaram Select Focus fund
1000 * 1 sip in Birla sunlife Equity Fund.

Start all your sip for 1 year. Take a review at that point of time and then start your sip all over again, after effecting any changes, if required.

You can also consider investing in DWs TAx Saving Fund, which has given good returns and also offers Free Life Insurance.

For your Rs.1 lakh, you can invest in a Debt/Arbitrage Fund and go for STP.
Best of luck,
Srikanth Shankar Matrubai

No comments: