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Should You Go for Child Plan?

should you buy child plan?

Every parent wants the best for their child. They want them to get the best of education and be financially secure and are willing to compromise or postpone their own dreams for the sake of their children. It therefore becomes necessary to choose the right financial plan for their future. Planning for their future needs to be started as early as possible. Assuming an inflation of 8%, it is safe to conclude that cost of education will rise significantly in the next 10 to 20 years. Many companies offer Child plan for these needs. So is Child plan the right option for your child’s need or should you consider other options?


Asset allocation: Diversifying Investments


Good investment strategy is the key to achieve your financial goals. This can be done by minimizing risks and thereby maximizing returns. Risks can be minimized by diversifying your investments. In simpler terms it means `do not put all your eggs in one basket’. Your investments should not be focused on just one asset class. It should be allocated strategically in different asset classes. Diversified portfolios are proven to have reduced losses in events such as economic crisis or bearish stock market.


Critical Illness Insurance


Critical illness insurance is a policy that covers some specific life threatening diseases. It typically covers illnesses like cancer, heart attack, organ transplant, kidney failure and paralysis. These conditions may seriously affect your lifestyle and your ability to earn income in the future. The cost of treatment of such illness is also very high and can easily drain your lifetime worth of savings.


Cash is King


India is a largely cash dependent economy. Even after extensive drive for digitization of transaction, cash still remains the go to option for many individuals. Cash transactions have yet again come on par with the pre-demonetisation levels. Though there is huge progress in the number of digital transactions, there is still a long way to go. Here is why cash is king for most individuals.


BUDGET 2019 – Full of JOSH!

Budget 2019

The Modi government delivered an impactful budget today, just before the elections, showering multiple benefits to the Tax Paying Citizens. Key benefits are as under:

Tax Rebate:The government has proposed to introduce full tax rebate for individuals earning up to 5lacs. With Tax saving investments included, the tax rebate extends to income till 7.25lacs. (includes 1.50lacs under section 80C, 50k in NPS, 25k in health insurance)


Growth vs. Dividend Mutual Fund


Mutual fund offers growth plan and dividend plan option for the same funds. The portfolio in which the fund invests is the same and the only difference is the treatment of gains.

In a growth option investors do not get payout in the form of dividend, instead this amount is reinvested in your fund. This increases the NAV of the fund. As there is reinvestment, the returns get compounded overtime and increase you returns in long term.


The Right Time To Start Financial Planning


Financial planning is a process which helps you to manage your finances. It works by linking your investments to your financial goals so that you can secure your future and be ready for life’s surprises.

The right time to start financial planning is as soon as you start earning even if your income may not be high at this point. Starting early will instill discipline in you and it will become a habit instead of urgency in the later years of your life. It will also give you a bigger benefit of compounding and thus a bigger corpus for your later years. At this age, you can afford to invest in riskier investment option such as equities. You will also be able to buy insurance at a low premium when you are young.