Search for:

Secure your Child’s Future – Invest in Mutual Fund

Raising one’s child to become the best version of himself/herself is the biggest responsibility of the parents. From nutrition, healthcare to education – you want to provide the best in everything to your child. 

 

Apart from that you also have to make sure that their future is secured. 

 

And the only way to achieve this mammoth task without hurting your own financial future is by investing through mutual funds. 

 

1. Goals for your Child’s Future

The first step towards investing is to know what you are investing for, i.e. what is your investment goal. Now, as parents, you need to have financial goals set for your child.

 

For example, you have to save for your child’s school admissions, his or her college/higher education, maybe for a degree from a foreign university, his/her marriage, etc. Try to figure out what kind of money you would need to achieve each of the goals. 

 

Say, for your child’s school admission you need to save Rs 2 lakh; or Rs 80 lakh for your child’s higher education, etc. This way you can turn your dreams for your child into financial goals. 

 

2. Choose the right fund and start saving towards the goal

Since you know your goals, you should start saving towards them. Now, it is extremely important to choose the right mutual fund as per your goals. 

 

For example, let’s suppose you would need Rs 2 lakh for your child’s school admission in two years. This is a short term goal, for which the main focus is capital preservation. Ideally, you should invest in Short Duration Debt Funds or FDs to achieve the goal on time. 

 

Meanwhile, you might also want to save for his/her higher education. This is a goal that is at least 17 or 18 years away. And also, due to inflation, the amount that you would need would be much higher than it is today.

 

For example, an MBA course at a top-rated university costs around Rs 20 lakh today. And at the 10% annual inflation rate the same course would cost Rs 80 lakh in 15 years.

 

So to achieve this goal, you need to invest in equity mutual funds as they are your best bet to get inflation-beating returns consistently over the long run.

 

3. Start investing through SIPs to save towards your goal

The easiest way to get into the habit of disciplined investing in mutual funds is by starting a SIP.

 

Through a SIP, you put a fixed amount of money every month towards your mutual fund investment, which over the years helps you achieve the target amount in time. 

 

For example, say you want your child to attend a top-rated B-school and for that, you need to save Rs 80 lakh in 15 years. If you choose to invest in a mutual fund through a SIP, then your monthly SIP amount would be Rs 16,000 every month to reach the goal on time (assuming 12% average annual returns)

 

4. Increase your SIP investments periodically

As every year your income and salary increases, you should also increase your SIP investments every year. This can be a fixed 10% every year or as per the percentage of increment in your salary each year. 

 

Now, this timely boost every month can make a huge difference in the final amount that you will receive. Let’s explain this with a two case scenario. 

 

Say you want to save Rs 80 lakh in 15 years to be prepared to send your kid to B-school. In the first case, you keep investing Rs 16,000 per month all through to reach the goal in time.

 

Meanwhile, if you keep increasing the investment amount by 10% every year, you can save Rs 80 lakh in 12 years. (In both the cases the return amount assumed is 12% p.a., though there are no guaranteed returns.) 

 

And if you reach the goal early, you will be much well prepared when it’s finally time for your kid to go to B-school.

 

5. Do not stop/skip your SIP investments

To achieve a financial goal on time, this is the most important thing to follow. That is, never stop or skip your SIP investment. Remember, one wrong step can completely jeopardize your child’s future. 

 

The most important future goals of your children are time-bound, like your child’s school, college education, or higher education.

 

So if you skip, miss, or stop your investments midway meant for such goals, it would mean you might not have enough funds when it’s time to go for college/university. So be regular with your investments. 

 

However, if you had to stop investing for some reason, make sure to fill that gap later by adding money later. 

 

Conclusion: 

Ensuring that your child’s future is well secured is one of your biggest responsibilities. There are several milestones that they need to achieve at different ages. And you need to be financially prepared to help them achieve each of the goals. 

 

So set the goals, determine the timeframe, and start investing in the right mutual funds.

 

4 Reasons You Need a Travel Protection Plan

4 Reasons You Need a Travel Protection Plan

1. You’ve invested a significant expense in your trip. If you have to cancel, you’ll lose that money.

Canceling a trip is a bummer enough. You don’t want to lose your entire trip investment on top of it. The Trip Cancellation benefit covers you in case you or a family member becomes ill or seriously injured before your trip, or if there’s a death in the family.

 

You can also be covered in the event of natural disaster or bad weather impacting your home or destination, or if your travel supplier (such as an airline) goes bankrupt or on strike. There are more reasons too – read them all in the policy.

 

Don’t want to be bound by the reasons outlined in the policy? Upgrade your plan with the Cancel For Any Reason option and you can cancel your trip for any reason at all!

 

2. Once you’ve departed on your trip, plans can still go wrong.
Unfortunately, baggage loss or damage is not uncommon. Neither are travel delays. Our plans offer coverage for these scenarios. And if your trip is interrupted and you have to leave early? Our plans cover that too. 

 

So you can feel more at ease packing up to leave your loved ones and your home behind, knowing that if something happens, you have coverage and help to get you back home. You need coverage in case you get sick or injured while away from home.

 

And within the many plans provide limited coverage out of your region. If you get sick or injured on your trip, access to medical coverage is important. 

 

This is not the case, particularly for visitors to other countries. Many travelers have been shocked at the cost of care abroad. And let’s go one step further…what if you become sick or injured on vacation and don’t heal immediately.

 

How will you get home? All our plans provide coverage for Emergency Medical Evacuation, enabling you to get to an adequate facility for treatment, then transported home if needed.

 

3. A travel protection plan gives you access to 24/7 assistance no matter where you are in the world.

Let’s say your passport was lost or stolen in Europe. Or your prescription medications were left behind in a hotel in Buenos Aires. 

 

Or you twisted your ankle on a hike in New Zealand and need to find a doctor. Who do you call or where do you go for help? With our plans, it’s easy.

 

Your plan comes with access to 24/7 Travel Assistance services, available at any time, from anywhere in the world. 

 

If at any point you have any question during your trip or need assistance with ANYTHING, you can call the numbers provided and get assistance from someone in your native language. Wouldn’t it feel nice to know that someone always has your back?

 

4. It’s a small price to pay to gain peace of mind.

We hope your trip goes completely smoothly. But think of the investment you made on your trip. Would you be comfortable losing it all in the event of a cancellation? 

 

And perhaps more importantly, think of the huge expense you could face if you become sick or injured while traveling and need medical care or an evacuation.

 

Covering yourself for the risks will make your trip all the more enjoyable and relaxing. And that’s the whole point, right?

4 Misconception’s About Car Insurance

4 Misconception’s About Car Insurance

It is quite a well-known fact that according to Indian law, while purchasing a new car, purchasing a car insurance policy is mandatory.

 

A car insurance policy would help in the protection of not only the car but also the person driving the car in case of any accidents or damages. 

 

But there is a lot of misinformation floating around related to car insurance plans, which leads to misconceptions among vehicle owners. 

 

1. You are a safe driver and do not need car insurance

You might think that you are an experienced and safe driver, so there is no need to purchase car insurance.

 

This is a wrong perception. You might be sure that you are one of the safe drivers but you cannot be sure about the conduct of other drivers and road conditions.

 

In case your car meets with an accident and your car is not insured, then you would have to pay all the expenses incurred in damage of a third party car and also your car out of your pocket. 

 

Moreover, the Motor Vehicles Act, 1988 makes it compulsory to have a third party car insurance policy while driving cars on the Indian roads.

 

2. Your insurance premium would be low if your car is older

 Usually, it is said that the older the car, the lower would be the premium. It is believed that the IDV (Insured Declared Value) of your car is the main factor determining your car insurance premium. 

 

So, if your car is older, then the IDV would be also less, and hence, you would obtain cheaper insurance.

 

However, this is not true always. In addition to the IDV of your car, there are several other factors as well, which determine the insurance premium of your car. 

 

These factors can be your previous driving history, the distance you have traveled, your claim history, the category of coverage you have purchased, your NCB, etc.

In case you have made numerous claims in the previous year, then your premium for the current year would be high.

 

3. Purchasing a car insurance policy is a slow process

The fact is no, it’s not a slow process anymore. Technological advancements have made the entire process easy and quick.

 

You can purchase and renew car insurance policies online conveniently and with minimum documentation.

 

You just need to fill in the basic details associated with your car, compare car insurance plans online, and make an informed decision.

 

Your car insurance would be in your mailbox within some time. This process is cheaper and very efficient.

 

4. Claim settlement is a very painful process

This is one of the most common car insurance myths. You might believe that in case of an incident involving your car, you might have to take a lot of pain to get a CLAIM

 

However, this is not a fact anymore. Claim settlement procedures are quite easy and can be done online conveniently. 

 

You will have to log in to the insurance company’s website and fill up the claim form. In case of successful claim registration, you would be asked for submitting your documents.

 

You can obtain assistance anytime during the claim procedure by connecting with the customer care representatives or by referring to the FAQs present on the company website.

 

Conclusion

So, these are some of the most common and widespread car insurance myths among vehicle owners.

 

You must understand the differences between myths and the realities associated with them to fully appreciate the car insurance cover that you own.

 

Make sure to compare car insurance policies online and buy the ones which suit your requirements by providing maximum coverage with a nominal premium.