Sunday, 27 March 2011

Invest for the education of your children

We wish to give our children the best education and hope that they should be grown up with best personality and education.  But when did you plan this. A famous child physiologist said that if you want a child with best behavior and personality you should plan two years before the birth of the child. Here for the higher education of your children you should plan at least the birth of the child. How much early you start investing for your children that much time lag you will get to grow your money to reach the required amount while this investment and the expense of education also associated with inflation. Inflation decreases the value of your money and at the same time it increases the amount of money you have to spend for the education of your children.

So you have to overcome both of the above mentioned facts, the diminishing value of money and the increasing cost of education. Yes I agree that your income also will be increased time to time. But if you start investing for your children very early you can get enough time to overcome both this facts. Then you will be well equipped with enough sources to grow your children positively in this competitive world.

From the beginning of life there is a tendency that the stronger survives. Your children also should be strong enough to survive in this world. So give them the better education you can. Start early in a systematic way to make enough money for this purpose. Here you can use the power of compound income. We suggest that start a systematic investment plan for your children and the accumulated income from such systematic plan will give you back a good amount of money to satisfy your need for your children,

You can start such investment according to your risk appetite. Even if you invest in equities in systematic plan for a long time you can harvest a good income from the investment. Buy the shares of strong companies and hold it for a long time and you will get a sure return from equities. If you are not confident in share market, don’t worry you can go for mutual funds. The fund will be managed by experienced person and your money will grow for a long time to a big amount. Do it in Systematic Investment Plan (SIP). You will get a good return from Mutual funds through SIP in a long run.

If you are not believe in mutual funds no problem you invest in government securities, bonds or even in Fixed deposits of banks. After a long time (you will get minimum 15 years for the higher education of your children, if you start investing in the Zero age of your children) you will get good money by the compound power of money. The interest you get this year also able to earn interest in the next year.

So start investing early as possible for the better future and better education of your children. We wish you and your children a better tomorrow.

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