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It’s never too early to start saving for your child’s future
Bajaj Capital / 12:00 May 01,2009

It’s never too early to start saving for your child’s future, so start before it’s too late!

Good educational background is most valuable gift which a parent can give for their child’s bright future.

Present scenario is drastically different from years before. Education cost has been rising, largely due to inflation and increased options. Resulting, huge corpus requirement for funding higher education of children and an adequate security cover in future, which can be built easily if one starts early and in a planned manner.

One need to consider following before choosing the right investment tool or before allocating assets in different investment tools;

·         Present financial status.

·         Your age and child’s age (for calculating time horizon of investment)

·         Inflation

·         Expected growth in your annual income

·         Present value of the goals and plans for child’s future.

Let’s understand the implications of above with help of case study of Mr A;

Mr A, 30 years old, wants to save for his two years old daughter’s higher education which costs Rs.6 lacs today. Taking inflation as 6 per cent he would need a sum of Rs 15,24,111 after 16 years for meeting his daughter’s college fees.

Here comes the role of financial planning to pave the way for his investments and goal funding.

So, to put an end to all worries related to child’s future, open an account and make your investments planned and goal oriented.

 

Open an Account now towards a Worry-Free Financial Life.


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