Outlook Business Desk
The Indian government recently launched the National Pension Scheme Vatsalya (NPS Vatsalya) in which parents can invest a minimum of Rs 1,000 per month with no upper limit, to their child's retirement planning
Key features of a Public Provident Fund (PPF) account for minors include a 15-year lock-in period, tax benefits, compounding, etc.
Some child oriented FD schemes are: PNB Balika Shiksha Scheme, PNB Uttam Non-Callable Term Deposit Scheme, Yes Bank Fixed Deposit for Child, and SBI FD for Child
An RD account ensures the investment of a fixed sum of money each month for a fixed tenure.
Gold ETFs allow investors to invest in gold and earn profits from an increase in its price. Gold ETFs can provide a higher return than FDs and bank accounts
The Sukanya Samridhi Yojana (SSY) is a government-backed savings scheme that parents can use for their girl child younger than the age of 10. Parents can start investing with a minimum amount of Rs 250
Mutual Funds are a safer option for investment in stock markets, with lesser risks than stocks and higher returns than traditional investment instruments.
Child ULIPs allow both investment and insurance benefits. They allow parents to invest in their child's future in the way their child receives funds at major milestones in their life.
NSC is a post office savings scheme. Parents can deposit minimum Rs 1,000 with no maximum limit
SIPs allow you to invest a predefined amount in different SIPs simultaneously with minimum deposit amount of Rs 500