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jagbir
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Quote jagbir Replybullet Posted: 27/Jul/2011 at 10:27pm
Originally posted by itpro

Originally posted by patra04

Thank you for the response Tejasji.
 

I have been thinking about doing something similar for my son (18 months old).

 

I kind of agree with you when you say, 'we can treat the primary investment for all future needs'.

 

I dont want to go the ULIP/Index/MF way as I feel we have to shell out unnecessary costs with these instruments which can cause a significant difference with returns in the long term.

 

Regards,

Rahul


If you can devote full time to financial mangement then its fine. Otherwise I would suggest the way the financal planner suggest
1. Invest in term plan.

2. Invest in mediclaim.

3. Invest in Mutual fund and Shares [ You decide the percentage based on the time you can spend and saftey you want ].

4. ULIP/Index are no...no.

e.g. It is better to leave it to professional fund manager for some percentage of target fund. For rest of the kicking... equity is there.

 


I'd recommend to add "Accidental / Disability Insurance Plan" as well in the list. This is very cheap but important insurance policy. In an unfortunate event like accident which results in some permanent/temporary disability, source of income may suffer/lost for long time. The term insurance would not help and mediclaim will be insufficient (as it only cover medical expenses up to certain limits).
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bandlab1
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Quote bandlab1 Replybullet Posted: 28/Jul/2012 at 10:00pm
it would be interesting what the author finally did. this is an interesting thought and i would say will be fruitful in the long run. sometimes it works to buy and forget instead of tweaking every year. just buy and forget and open the locker after 20 years. you can open demat account on the kid and he can only sell after becoing major.
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surjeetk21
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Quote surjeetk21 Replybullet Posted: 03/Sep/2012 at 10:06pm
this was question in my mind as to where should i invest money for my child to get a minimum 15 % return yoy and i realised that index investing is best. sensex gave a return of approx 17% yoy since inception. so if we have horizon of 20 yrs for requirement of money for kids i feel it is best to invest there.though i also feel that we must diversify our investment in debt and others investment options as well. this was just a thought i am yet to act on it.
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Dragonbhat
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Quote Dragonbhat Replybullet Posted: 03/Sep/2012 at 8:38am
Hi Surjeet,

In case you are investing money for your child, please Do Not put all the money in an index fund. Past performance is not an indicator of future performance. For the index to give 15% yoy in 20 years index will have to reach Sensex 200000+.

In the last 17 years index was able to give that kind of returns because it started with a low base. Individual stock might give you 15% yoy but Sensex is highly unlikely to do so.

Based on my 12 years of investing experience, somethings are good to read in books but these are good only to understand the concept of investing. They do not have practical application.

If it is possible, don't invest more than 33% of the money in one single asset or avenue.

Regards,
Dragon.

P.S: Sorry if the post is too long or any of my calculations are wrong.
Hindsight is 20/20.
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Quote bandlab1 Replybullet Posted: 07/Nov/2012 at 10:36pm
you need to keep checking the performance atleast once a year
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