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How should I invest my savings for my child's education?

To create a corpus for your higher education— around 15 years from now—invest your money in mutual funds schemes. You must also review and rebalance your portfolio regularly and do increase SIPs by 10 percent yearly to combat inflation.

ET CONTRIBUTORS|
Nov 18, 2019, 06.30 AM IST
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Take help from financial adviser when reviewing your portfolio.
I am 38 and earn Rs 58,000 per month. I have to pay Rs 20,000 every month towards various loan EMIs. I spend Rs 8,000 on travel and another Rs 8,000 on shopping and other expenses. I invest Rs 4,000 per month in PPF and Rs 1,000 in an RD. I also give Rs 6,000 to my parents. I want to invest for my four-year-old child’s education now. How should I invest my money?
Raj Khosla Founder and Managing Director, Mymoneymantra.com
replies: Given the heavy cash outgo each month, you must build a short-term emergency corpus besides fulfilling the long-term goal of your child’s education. An SIP is the best route to save. You should invest Rs 3,000 in Franklin India Ultra Short Bond Fund and ICICI Prudential Ultra Short Term Fund for short term needs such as primary schooling involving a horizon of 3 to 5 years.

To create corpus for his higher education— around 15 years from now—invest Rs 4,000 in Axis Blue Chip Fund, Rs 2,000 in DSP Midcap Fund and Rs 2,000 in HDFC Small Cap Fund. Review and rebalance portfolio regularly and do increase SIPs by 10% yearly to combat inflation.

I am a 74-year-old retired army officer. I have investments in FDs and debt funds. I now want to invest Rs 50,000-60,000 a month. Please suggest safe and secure investment avenues.
Jayant R. Pai, CFP and Head-Products, PPFAS Mutual Fund
replies: Given that you are seeking safety and security, and assuming you want to supplement your monthly pension, avoid equity mutual funds. Since you already have exposure to fixed deposits and debt mutual funds, consider investing your surplus in any one or a mix of these options. You could also use this opportunity to review your portfolio with the help of a financial adviser.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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