Planning your child’s future with SIPs in Mutual Funds

Before you even have a child, you need to start playing out their future in your mind. Which hospital they will be born in, which preschool they will attend, what kind of skills they will learn, and much more. But the one thing that is certain before your newborn baby’s arrival is that you’ll need to have a full-proof plan for their education and other needs. That means building up the right amount of corpus dedicated solely to fulfilling your child’s hopes and dreams.

Over the last few decades, education and medical costs have increased exponentially in India. That makes it even more imperative for you to devise a plan for your child’s future well in advance. One way to begin preparing is by investing in the right avenues, such as mutual funds. Here are some benefits of systematic investment plans (SIPs) that make it easier for you to invest in mutual funds while securing your child’s future:

1. Small but regular investments

The biggest advantage of starting an SIP is that you develop the habit of saving a fixed amount at the end of each month, which is essential to inculcate when you’re a parent. SIPs encourage you to invest a small amount on a fixed-period basis. The amount can build up into a sizable corpus over time, thanks to rupee-cost averaging. With your cost of investments averaging out over time, you will not need to worry about timing the market, thus increasing your returns. The most exciting part is you can start an SIP with as little as Rs. 500 per month.

2. Simple and automatic

Don’t let your taxing schedule get in the way of preparing for your child’s future. A SIP allows an investor to set up automatic transactions with their bank account, so you are saved from the trouble of having to remember and transfer the amount every month. SIPs are also simple to set up, operate, and discontinue as per your preferences. This is especially true if you sign up on the Moneyfy app, as it makes investing in mutual funds a 3-step process.

3. Equity investments for better returns

When you want returns that help you beat inflation, investing in equity mutual funds might be the ideal choice. You can start an SIP and invest small as you test the market and gather intelligence about trends. However, if you feel risk-averse and would like more stable returns, you can choose to make a SIP investment in debt mutual funds or hybrid funds that reduce your risk exposure.

One of the most significant responsibilities of being a parent is ensuring your child’s needs are met. From education to medical expenses, you need careful planning to make your life more comfortable. Starting an SIP in mutual funds will help you build a corpus without putting too much pressure on your savings.

Conclusion

If you are not sure how to go about investing, simply install the Tata Capital Moneyfy App and start comparing various funds! Select the ones that will align with your goals, select a suitable SIP, and make your first investment in 3 easy steps.