All loving parents have a dream on their kids and willing to provide the best education from the beginning. At present, we all are well aware about the difficulty to meet the huge expenses for higher studies. Is there any solution for this? Yes. As an intelligent parent, you should identify have a well defined financial plan to meet the requirements.One secret is to remember when planning for kid’s future, it should start at the early stage and the money should grow along with your kid. To grow the money along with your kid, good study required before making any investment decision.Here is my personal plan for my kid: I have planned and started when my baby was one month old. With this plan, I am giving her a good mix of mutual fund portfolio of 12 – 15 funds, both equity and balanced mix, when she is reaching at the age of 15. To achieve this, in the beginning of each financial year, I am starting an SIP (Systematic Investment Plan) with a good mutual fund for next 12 months. Upon completion of 12 months, next SIP with another fund for next 12 months. This process will go till when she is in the age of 15.Selecting and investing in the mutual funds required proper research. In this Blog I have provided enough articles on this regard. It is better to keep majority of equity based mutual funds in your kid’s portfolio. To balance the portfolio, a good mix of balanced and debt funds also required. To meet the proportion, do first 2 years SIP with equity funds and in the third year go for a balanced or debt fund. Again next two will be equity based followed by one balanced or debt fund. Through this disciplined procedure, after fifteen years, your kid will have a well mix of 10 equity funds and 5 balanced or debt funds.In my opinion, depends upon the amount you are investing each year, your kid can use her portfolio for higher studies. If your equity fund giving a very minimum CAGR of 18% year (it is highly possible), the amount from her portfolio will have enough money to meet all the financial requirements.So think well and give me a comment on this about how you feel on this practical idea.
Tomorrow’s special recipe: How to buy gold using systematic approach