Key Features of Child Education & Marriage Planning

• Long-Term Goal Orientation: Focuses on financial goals that are typically 10-20 years in the future.
• Disciplined Savings: Emphasizes regular contributions to build a substantial fund.
• Inflation Adjustment: Accounts for the rising costs of education and weddings over time.
• Risk Management: Balances investment risk with the need for stable growth.
• Flexible Payouts: Plans often offer flexible payout options to align with specific needs.

Types of Child Education & Marriage Planning Instruments

• Child Insurance Plans:
  • Combine insurance coverage with investment.
  • Offer a death benefit to ensure the child’s financial security in case of the parent’s demise.
  • Provide maturity benefits to fund education or marriage expenses.
  • May have a “waiver of premium” feature.
• Sukanya Samriddhi Yojana (SSY):
  • Government-backed savings scheme specifically for the girl child.
  • Offers high interest rates and tax benefits.
  • Maturity proceeds can be used for education or marriage.
• Mutual Funds (Equity & Hybrid):
  • Offer potential for higher returns over the long term.
  • Systematic Investment Plans (SIPs) allow for regular, disciplined investment.
  • Suitable for long-term wealth creation, but carry market risk.
• Unit Linked Insurance Plans (ULIPs):
  • Combine insurance and investment, offering flexibility in fund allocation.
  • Allow for switching between equity and debt funds.
  • Offer potential for market-linked returns.
• Fixed Deposits (FDs):
  • Provide stable, guaranteed returns.
  • Offer a safe investment option for risk-averse individuals.
  • Can be used to accumulate funds over time.

Benefits of Child Education & Marriage Planning

• Financial Security: Ensures that the child’s future needs are met, regardless of unforeseen circumstances.
• Reduced Financial Burden: Alleviates the stress of funding expensive life events.
• Early Start Advantage: Benefits from the power of compounding over a long investment horizon.
• Goal-Specific Savings: Helps to stay focused on achieving specific financial objectives.
• Peace of Mind: Provides assurance that the child’s future is financially secure.