Children education Planning - Suggestions

Q & A Forum › Category: Financial Planning › Children education Planning – Suggestions

kkrao1987 asked 5 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

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Sreekanth Staff answered 5 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 :

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kkrao1987 replied 5 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…

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Sreekanth Staff answered 5 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 :