It may seem daunting to invest for child’s future, but there is a simple and effective way to secure financial stability. If your child is between 3 years old or younger, you can begin investing now to create a corpus of ₹1 crore when they are in college.
Why Plan Early?
With rising costs of education and living, early financial planning becomes crucial. Thanks to the power of compounding, starting early gives your investments more time to grow. Investing through a Systematic Investment Plan (SIP) is an effective way to achieve this goal.
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How Does SIP Work?
A SIP helps you invest a fixed sum periodically in a mutual fund. The small, periodic investments over a period of time and compound with the market. With just ₹10,000 per month invested for 15 years with an assumed return of 12% per annum, you can create a corpus of ₹1 crore. Consistency and an early start are the secrets here.
Three Easy Ways to Reach ₹1 Crore
- Start Early: The earlier you start, the better your chances of reaching the goal. Time helps your money grow through compounding.
- Invest Smartly: Choose funds with good historical returns and diversify your investments.
- Stay Consistent: Even if the market fluctuates, continue your SIPs to maximize returns over the long term.
The Bottom Line
Financial security for your child’s future requires planning and commitment. By starting early and investing consistently, you can ensure your child becomes a crorepati by the time they reach college. Start your SIP today and secure a bright future for your little one.
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