Question 1

When should I start investing for my child's future?

Accepted Answer

The earlier the better. Starting at birth gives 18 years of compounding for education and 25 years for marriage. A Rs 5,000/month SIP started at birth at 12% return grows to approximately Rs 67L by age 18 and Rs 1.95 Cr by age 25.

Question 2

Which mutual fund is best for child education planning?

Accepted Answer

For a 10+ year goal, diversified equity funds (large-cap or flexicap) or dedicated children's funds work well. Gradually shift to debt or balanced funds 2-3 years before the goal to protect the accumulated corpus.

Question 3

Are there dedicated children's mutual funds?

Accepted Answer

Yes. Several AMCs offer dedicated children's plans (like HDFC Children's Gift Fund, SBI Magnum Children's Benefit Fund). These typically have a lock-in until the child turns 18 or for 5 years, whichever is earlier. Regular diversified equity funds with discipline can achieve similar results.

Question 4

How much should I budget for a child's marriage in India?

Accepted Answer

Marriage costs vary widely by region and family expectations. A reasonable range is Rs 15-50L in today's money. At 7% inflation over 20 years, Rs 30L today becomes approximately Rs 1.16 Cr. Plan based on your specific expectations.

Children Future Planning Calculator

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