Mutual fund is the easy way
According to experts, mutual funds are the easiest way to make your child a millionaire comfortably and without much risk. People should invest small amount of money in mutual fund SIP (Systematic Investment Plan) for their child. In this mode of mutual fund investment, you can continue to invest for a long period of time and make a huge amount of money.
Invest only Rs.200
The important thing is that you have to start with just Rs.200 to make your kid a millionaire. You have to invest this amount on daily basis. Now you cannot deposit money daily, so you will need Rs.6000 on monthly basis. You have to invest this much continuously for 25 years. Know further the rest of the multiplication maths.
millionaire in 25 years
If you continue to invest Rs 6000 every month for 25 years then your investment amount will be Rs 18 lakh. Now even if you get 12 per cent return annually on this, then the amount of return will be Rs 95.85 lakh when your child turns 25. Thus the total money accumulated for a 25-year-old child will be Rs 1.13 crore. At the age of 25, if a fund of Rs 1.13 crore is prepared for your son or daughter, then it can be very useful for his marriage or education.
2 crore fund may be ready
If you continue to invest Rs.6000 every month for 25 years, then your investment amount will be only Rs.18 lakhs. Now if you get 15 per cent return on this instead of 12 per cent annually, then over a period of 25 years, a fund of Rs 1.97 crore will be created with investment amount and return amount.
Some things to keep in mind
Investing in mutual funds is a mid or long term investment option, so the fund chosen should be in sync with your financial goals
It is important to take into account the risk in the case of investment for the child.
Investing in mutual funds involves a lot of money and hence, a good amount of research should be done to choose the fund carefully
– Once invested, you get returns over time, but you will need regular monitoring