We have 4-year-old twin sons. We want to invest some amount through SIP for their higher education. Right now, I can start at Rs 5,000 per month for each of them. However, we don’t understand which is the best scheme to invest in. Please guide.
Vidya Bala, Co-Founder, PrimeInvestor.in replies: Since you are new to investing, you can start with SIPs in index funds such as UTI Nifty Index Fund and Motilal Oswal Nifty 500 for 70% of your planned investment. Use PPF or a corporate bond fund such as HDFC Corporate Bond for about 30 per cent of the allocation to debt. This will ensure that you don’t need to review or maintain your portfolio and get market-linked returns. You can add a mid-cap fund or a mid-cap index fund later when you save
I am a 38-year-old woman. I can invest Rs 50,000 per annum for my 7-year-old daughter or 11-year-old son. Kindly suggest some good options.
Adhil Shetty CEO, BankBazaar replies: There are two things you need to keep in mind. First, education is not necessarily a linear process always. There might be several milestones along the way. So arrange your investments in such a way that you have liquidity at every significant point.