SIP is one of the popular savings and wealth accumulation tools in the investment market
Radhika Gupta, CEO and Managing Director, Edelweiss Mutual Fund, recently shared some valuable tips for parents who are starting their children's investment journey. did. Ms. Gupta, who has always been an advocate of investing in her children from an early age, believes that new parents should start investing financially in their children as early as possible.
In a post on X shared “upon popular request” on March 29, she wrote that parents should start investing in their children early on to secure their financial future. Here are some easy ways to do it. Ms. Gupta advised parents to organize their child's documents, set goals, invest in 2-3 SIPs every month, and review and adjust goals regularly.
See post here:
Due to many requests, I would like to briefly think about investing in children.
1. Prepare documents like birth certificate, Aadhar, PAN, and bank account. In fact, even minors can do it easily.
2. Try to find a goal for saving. Higher education is one of them. If you break it down into numbers…
— Radhika Gupta (@iRadhikaGupta) March 29, 2024
Here's what she wrote:
- Prepare documents like birth certificate, Aadhar, PAN, and bank account. In fact, even minors can do it easily.
- Find goals to save for, including higher education. Divide into the required number of years to calculate the investment amount.
- We conduct SIP every month. 2-3 funds will work. You can use large/mid-cap index funds for broad market exposure, small- and mid-cap funds for added risk, and international funds if you are considering studying abroad for currency management. , 94 people who asked you can do all this without special funds for children, such as gifts.
- Review this regularly as your goals change and become more conservative as you get closer to your goals. Your child is old enough to understand, so include them in this process.
- This is not a perfect process, but you can easily create your own. But enough to get you started. Finally, we encourage gift givers to gift a unit or her SIP to their children. I understand how difficult it is to receive three ball pools and four baby strollers as gifts and store them at your house in Mumbai. Monetary gifts are more productive and take up less space.
In particular, SIP (Systematic Investment Plan) is one of the popular savings and wealth accumulation tools in the investment market. To operate a SIP, you need to invest a certain amount at predetermined intervals. The amount is around Rs 500 and you can choose the interval as per your flexibility like weekly, monthly, quarterly, half yearly or yearly.
If you maintain it for 15 to 20 years, you will get big profits in the future. The sooner you invest, the better. SIPs can be profitable in the long run as investment growth compounds and periodic losses are averaged out.
