Honestly, gotta appreciate this kind of planning 
Most of us keep saying, āIāll do it tomorrow, first thing in the morningā and then tomorrow comes, we postpone it to the next tomorrow, and somehow that tomorrow never actually comes. 
Iāve been guilty of exactly this, so maybe this is my sign to finally do itā¦ tomorrow morning.
The baby isnāt even born yet and already has KYC requirements waiting.
i wonder whether āinvestingā in a pack of condoms last year
might have provided them higher RoI? 
Anyway, thatās in their past,
now having invested/gained exposure to 1x unit of āa kidā, ā¦
- which is an extremely illiquid asset,
- with a somewhat known SIP-schedule,
- and itās predictable future drawdowns,
ā¦probably a good time to hedge
the risks they have incidentally exposed themselves to,
by gathering the necessary exposure to other assets
uncorrelated or inversely correlated to the ākidā asset.
Cupid
@cvs Buddy, please let me know what instruments I can use to hedge my kid. Apart from investing in the markets, Iām open to suggestions
Well in my opinion itās a new precedence in investingā¦
But bro how are you sure if its a bro or a sis. You are being sexist hereā¦
Fair point. Let me correct that before the imaginary team opens a case against me.
A few popular āinstrumentsā (in no particular order) are :
- having another kid, a few years apart, ideally of the opposite sex.
- diversification. have a few, and soon one is passive-investing in a ākid indexā.
- being part of a larger joint-family or a social-community.
- demographic dividend addressing the otherwise inherent immediate liquidity crunch.
- investing and insuring oneās health
- increasing the odds of successfully holding the asset till maturity.
- investing in educating the kid
- Historically has been the best put option for downside protection of the ākidā asset.
However,- All such options are not fungible.
- Not as strictly regulated as some of the other financial markets. Many fraud/fake put sellers.
- Off-late, the premiums of some of these options are too high, making folks question their worth.
- Historically has been the best put option for downside protection of the ākidā asset.
Next, if we consider non-equity as also ānot investing in marketā
- EPF/VPF/PPF.
- Debt-oriented NPS plan.
- Very long-dated sovereign bonds.
Some reliable source of regular/steady income.
- employment, or SWP of oneās existing assets.
- short-dated liquid deposits
ā¦to avoid any unexpected emergencies from disrupting
the SIP required into the ākidā asset to ensure the best chance of it over-performing.