What’s the best education insurance plan/fund for the indian child to learn costliest courses like MBBS/MD. Suppose if my child is just 1 yr of age, when if my child reaches 18+ yrs and would like to pursue/study MBBS(20 LACS COURSE FEE present), Further Inflation occurs if it reaches 25 lacs, Is it a just dream for the child to learn MBBS/MD Course (or) Is there Any alternate route for the child to take help of Indian Insurance Policy/Mutual Fund. Assume my child Score an Average Marks of 60 % in +2 & Avg. Score in Enterance Exam, Need extra donation/money to fullfill child’s dream! What would Be the Alternate Way for LONG TERM INVESTMENT ESPECIALLY FOR CHILD EDUCATION?
A lot of people I know tend to make this basic mistake. They identify a financial goal (which in your case is your child’s higher education) but end up taking the wrong approach to achieve their goal. The main culprit for taking this wrong decision is clearly the agent selling (or rather misselling) the financial product. The agent always keeps his incentive in perspective over the client;s financial goal.
Anyway to cut the long story short - Insurance is not really an investment vehicle. Insurance is just a economic claim against a possible event (death, accident, theft etc). So it is best if we treat insurance as a mandatory expense as opposed to an investment option.
Having said that, in your specific case you I would suggest you invest in a good quality equity mutual fund keeping a very long term in perspective. The best approach to do this is via a classic, time tested SIP way. You will be pleasantly surprised to know that Indian equity funds (good ones) have generated over 15% CAGR return, which I think is spectacular.
So, earmark a monthly amount for your child’s future education, invest that in a SIP and DO NOT discontinue it. Keep it going for at least 20 years. I’m certain the markets wont let you down, especially since you are giving it time to work in your favor.
hi karthik,
What is the minimum & maximum withdrawl period of any mutual fund? How to better research in mutual fund ? Any Websites ? i’ve visited moneycontrol.com, most of the questions remains silent inside me, how to clarify it ? Can i ask questions in zerodha trading q and a platform ?
There is nothing like a min & max withdrawl period…in a open ended eq MF. You will find a wealth of information on morningstar.in and valueresearchonline.com