There are a number of investment avenues in the market for you to choose from. You can prefer the scheme according to your income, risk taking capacity, investment tenure, etc. Age is an important factor in determining the investment that suits you because generally income and responsibilities will change along with age. There are more than 1000 products in the country including Fixed Deposits, Insurance, Mutual Fund and other fixed income instruments. If the number of choice is more possibility of getting confused is also more. So choosing the best one among these is really a difficult task. Now the problem is that, how to find the best investment, who will guide you in this, how much you should invest, when should you invest, etc. if you are approaching some sales people possibility of getting misguided is more. Here comes the importance of IndianMoney.com. As we are only into advising we can provide you complete financial solutions for all your problems without any bias.
In this article we will introduce you some of the investments that best suits for a parent. As we mentioned earlier investment preference will change according to the stages of life (age). Investments in aggressive stocks are suitable for people ranging from 24 – 30 years. But it won’t suit for a parent whose age is more than 40. Because a parent has more responsibility, he has to take care of his family, children’s education, daughter’s marriage, medical expenses of parents, etc. So comparatively less risky investments with good returns will suit him.
Following are five major investments suitable for a parent;
You should go about planning for your child’s future because education makes a man perfect. Every parent will have the objective of providing quality education for their children. But in today’s condition it is very difficult to provide quality education without having proper money back up. You need to save good amount of money for this purpose. Avenues like equities, mutual funds, fixed income instruments and insurance products all offer financial planning for your child’s education. In olden days education and marriage were affordable and your investments in PPF (Public Provident Fund), NSC (National Savings Certificate) and fixed deposits (FDs) earned you a good enough rate of return. But now the scenario is different you should invest in more productive investments to take care of the expenses
See Also: 10 Rules For Planning Your Childs Future
A Debt Mutual fund is a type of mutual fund that is planned especially for the low risk investor whose main aim is capital protection coupled with decent returns on investment. These are for investors who prefer funds with lesser volatility, who want a regular income and are willing to take little or very limited risk. All mutual funds have some quantity of risk, but debt mutual funds are less risky than equity oriented mutual funds. Debt funds generally invest in fixed income instruments that may also offer capital appreciation. Debt funds can give you ‘Capital Appreciation’ and ‘Regular Income’.
Debt funds are specifically planned for the shareholders who are not ready to take risks that come with equity mutual funds. But at the same time wants a better return than bank deposits. You can have limited contact to these funds to add a balance to your portfolio. An ideal investment portfolio would have around 10-15% exposure to these instruments.
All the above mentioned investments are safe and giving good returns to the investors. The primary objective of a parent should be to have sufficient financial back up to take care of his future contingencies. In that respect investing in aggressive Equities or Mutual Funds won’t be a good idea. There are a number of investments that a parent can make and protect his future.
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