Your A timely investment is necessary to create enough capital wealth to support your child’s higher education. Investing in mutual funds may help you achieve that financial goal. So, starting early investment with mutual funds will help accumulate enough wealth to give quality education to your child.

Either your child studies in hometown or plan to study abroad, both require monetary support. Studying abroad costs Rs. 25-30 Lakhs minimum and don’t forget the living cost in the country. So, financial planning with mutual funds can help create sufficient wealth to support your child’s higher education.

Benefits of choosing a mutual fund for investment

Mutual funds can offer portfolio diversification, providing good investment returns as the portfolio is divided into different securities.

You can invest in a mutual fund with a lump sum amount or start with minimum investment through the SIP plan and gradually increase it over the time period. This doesn’t put pressure on your regular financial well-being.

Also read: What is Lumpsum?

Investing in equity mutual funds may provide long term returns but are also very risky. These mutual funds give dividend returns to their investors. They might reinvest these dividends to boost their capital growth, thus continuing this cycle. Investing in equity mutual fund can give capital appreciation if you properly strategize your investment plan.

If you want to minimize the risk, you can consider debt mutual funds. These funds invest in low-risk securities like government bonds or corporate securities. However, they may offer reasonable returns due to low-risk characteristic. As a result, they can help generate capital wealth in the long run.

Another aspect is the cash liquidity. Mutual funds can also offer easy money withdrawal at a required time while maintaining good returns.

Conclusion

Buying investment plans at earlier stage can help build the capital wealth for your child’s higher education. Creating a portfolio consisting a mix of different mutual funds can provide an opportunity to get higher returns. With various mutual funds options to choose from, you should select those that aligns with your financial goals. Therefore, start planning your child’s future now with mutual funds. You can visit our Aditya Birla Sun Life Mutual Fund website to gain more insights on our mutual fund schemes.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.