Children education Planning – Suggestions

Q & A ForumCategory: Financial PlanningChildren education Planning – Suggestions
kkrao1987 asked 3 years ago
Hi ReLakhs Team, I am 33Y married and with 2 children's, currently holding term insurance, health insurance & personal accident insurance. I am investing in PPF, APY (self & spouse separately) & ELSS ( Axis & ABSL). i am planning to invest for children's educations like below Child-1: PPF: 2500/- (long term 15 Y) MF: 2500/- (long term 10 to 15 Y) ULP: 2500/-  (for phased payouts for 4/5 years) RD: 2500/- ( immediate yearly requirements) Child-2: SSY: 2500/- (long term 15 Y) MF: 2500/- (long term 10 to 15 Y) ULP: 2500/-  (for phased payouts) RD: 2500/- ( immediate requirements) Question-1: kindly suggest on best top performance ULIP's and MF for investments. MF: i am planning for
  • Nippon India LG DP
  • UTI Nifty index growth DP
  • whether shall i divide 2500 into 1000 for Nippon and 1000 for UTI like that or 2500 in one MF.
  • any other MF advise.
ULIP: some information's i collected,
  • icici pru signature.
  • HDFC Life SL YoungStar SP
  • sbi life - smart scholar
  • Aegon iMaximize
  • Aviva Young Scholar Secure
  • BAL Smart Wealth Goal
Question-2: whether PPF & SSY safe to open in private banks like ICICI/ SBI apart from post office. pls advise. thank you in advance. regards KRK
2 Answers
Sreekanth Staff answered 3 years ago
Dear KRK, 1 - May I know if you have calculated the expected (required) corpus for Kids' higher education goal?? 2 - Are you planning to opt for new tax regime?  3 - Are your current investments in ELSS funds (Axis/ABSL) earmarked for any specific goal and tax saving? 4 - Why would you like to pick ULIPs? 5 - Have you started saving/investing for your Retirement goal?   Investing in PPF/SSY is safe via pvt banks :) , should not be of any issue!   Related articles : 1 - 
kkrao1987 replied 3 years ago

Hi Team, thanks for your replies and below details for your references

1: yes! but currently what ever i mentioned i.e. 20K on both children’s is what i can invest that to in a diversified mode.

2: No i am not planning for any tax purpose, already my 80C is full.

3: yes ELSS funds for my retirement plans.

4: for phased payouts b/w 5/6 years for education purposes.

5: Yes, PPF, ELSS for the retirement goals.

let me know your further advises…

Sreekanth Staff answered 3 years ago
Hi, 1 - PPF & SSA + Mutual Funds should be fine. You may skip ULIPs. 2 - If you are not going to claim tax deduction (80c), can stop investing in ELSS funds and instead pick other plain equity funds. Related articles :
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