If you are a smart investor you are always on the lookout for a fund that can make your money work for you. Reliance Child solution is one such fund. It brings to you best in class fund management that can make sure you take care of your child’s education without breaking a sweat.
A dedicated fund
If your child is 6 years old, she may join a college in about ten years. But as she grows up, the cost of education will go up too. College fees which maybe Rs.10 Lakhs today would be about Rs.18 Lakhs in the next ten years, simply driven by inflation.
So it makes sense to invest in a fund dedicated to your child’s education, where you invest and set aside money every year. When your child grows up, you know you have a safe investment to take care of the college fees.
Returns and safety
Reliance child solution is a mutual fund that will invest your money in equity, equity related instruments and fixed income instruments. This will give it the necessary safety, without compromising on high returns.
Reliance child solution calculator
A little bit of planning goes a long way. When you invest in reliance child solution, you have the choice to go about it in a planned manner. Using the fund’s calculator, you can find out exactly how much you need to save each year in order to meet the education needs.
So if you need Rs. 20,00,000 in 10 years, you know you will need to invest approximately Rs.19,000 every month. At a rate of 8% every year, this money will grow so that you have accumulated savings exactly when you need it in ten years.
Systematic investment
Reliance child solution, just like any other mutual fund offers you the option of investing systematically. If you start early, this gives you two great advantages:
- The power of compounding
- The ease of investing small amounts
Invest as much as you want
The reliance child solution calculator tells you how much you need to save for your child’s education. But there is no limit to how much you can save in this fund. At any point you can increase your investments. You should ideally invest only the amount that you can keep for a long term of 5,10,15 years. But you can redeem the money whenever you need.
The minimum investment can be as little as Rs.100 per month, but you should ideally follow a financial plan to know how much you need to save.
Investing with ease
This fund is available on direct investment platforms. You don’t have to maintain certificates or redemption notes to manage the investment. All you have to do is decide the amount and start investing with reliance mutual fund online.
Track your investments over the portal of your direct investment platform and redeem when the need arises.
Mutual fund Vs Insurance
When you invest in an insurance plan, you have to normally undergo a medical test. There are many charges for the risk that the insurance company is taking – securing your family for a financial need in the future. The cost of exiting an insurance plan is prohibitive. In fact, it is impossible to exit the investment in the first 3 years.
But when you invest for a goal through a mutual fund, you don’t have to face any of these obstacles. The fund management charge of a mutual fund is as low as 1-2%. This means almost 98% of your money will be invested in markets. You don’t have to undergo any tests or delay in processing this investment. You don’t even have to leave the comfort of your home or office to start investing.
What’s more – if, for any reason you need to exit your investment in reliance child solution, all you need to do is put a redemption/sale request on your investment platform.
With so many benefits, this is clearly a great option to plan for your child’s education. So what are you waiting for – be a wise investor and start investing in this smart investment option right away!
