Money Investment Strategy for New Parents

Money Investment Strategy for New Parents

No doubt, becoming a parent is one of the greatest joys one can ever experience. We as parents aim to provide the best available education and facilities to our children to help them achieve their dreams and goals. However, we never know what uncertainty might fall upon our family or us. Unfortunate events, such as the untimely demise of the breadwinner, might create financial and emotional struggles for the family. To ensure that they do not fall in the clutches of financial constraints, it is important to have a sound financial backup ready in advance.

Investing in the best money investment plans, especially for new parents, has become important in the hard times of uncertainties and the rising cost of inflation rates, especially after the Covid-19 pandemic. In this article, we will have a look at a few of the best money investment plans in India that new parents can consider investing in.

Unit Linked Insurance Plan (ULIP)

  • Unit Linked Insurance Plan(ULIP) is one of the best money investment plans for the new parents to invest in.
  • This plan comes with a combination of investment and wealth creation. In other words, you can get financial security and invest in market-related stocks, such as bonds, shares, equity, etc.
  • One of the key benefits of this money investment plan is that it offers great liquidity and high returns and helps you achieve your long-term and short-term goals.
  • This plan provides high interest rates and a lump sum amount of death benefits in case of unforeseen demise of the policyholder.
  • You can claim tax deductions under this plan. This plan offers 1.5 lakhs of tax deduction benefits under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

Public Provident Fund (PPF)

  • Public Provident Fund (PPF) is another best money investment plan that new parents can invest in.
  • This plan has a lock-in period of 15 years.
  • In case of a financial emergency, the policyholder can withdraw a partial amount during the 7th year of the policy.
  • The interest rate Public Provident Fund (PPF) offers is 7.1% on an annual basis.
  • The money investment plan offers tax deduction benefits of up to Rs. 1.5 lakhs in one financial year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

Sukanya Samriddhi Scheme (SSS)

  • Sukanya Samriddhi Scheme is a money investment plan that is backed by the Government of India.
  • New parents can open a Sukanya Samriddhi Scheme account for their daughters up till the age of 10.
  • The minimum deposit you have to make every year is Rs. 1000 and the maximum deposit in one year is Rs. 1.5 lakhs.
  • You can deposit the money until your daughter attains 14 years of age.
  • The maturity period of this plan is 21 days or 3 weeks after opening the account.
  • This plan offers an interest rate of 8.6% on buying annual investment plan basis.
  • Sukanya Samriddhi Scheme offers tax deduction benefits of up to Rs. 1.5 lakhs in every financial year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

Your Way Forward

You now know what the best money investment plans new parents can consider investing in to provide financial security to their child. Planning a financial security net in advance will ensure that your child’s future is secure, and he can avail the best opportunities available. Moreover, in case you are not around to provide financial help to your child, he will not have to compromise on his education or dreams and can continue to live a life that does not involve any financial hassles.

Disclaimer:

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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