If you are blessed with a new born kid, congratulations. All those months of wait and dreams will finally be built.
As all parents want the best for their kid, it is important to start investing in your child’s name as soon as you can. Even a Rs2000 investment in the right kind of fund, can help your investments grow in 10-15 years. The best years for a parent is to enjoy watching their child grow. It is best spent without any tension in your mind like to opt for a car loan or an educational loan which you might sign up for just to provide your child the car he/she wanted or for financing his/her higher education in the university he/she desires to study in.
You can create a sense of encouragement to other couples and make them realize the responsibility of parenthood seriously. With a 10-12 year time frame, you have time on your side and should look for large- and large- and mid-cap funds. These funds can help your investments grow.
Not only you as a parent can enjoy these benefits but also, pass on the same teachings to your child so as to continue a debt free generation. Educating children of the hazards of getting into a debt trap, is of great importance. Linking goals with investments is important method of financing your requirements. With this approach you can guarantee yourself to opt for hassle free financing of your requirements like purchasing a house, buying a second car etc.
Once you complete with all your responsibilities you can enjoy a tension free post-retirement life. Factoring in inflation to your rate of return, can help you get the right amount for financing your monthly expenses.