SIP For Child Education and Marriage – Read This before Making Investment
There is nothing wrong to say that parents often take care of their child. Making the child grow well, paying attention to his/her health, providing good education and marriage, these are some of the responsibilities of parents towards their child. However many times things don’t remain on track as many people earns a limited sum of money. Therefore it is a vital decision to buy an SIP i.e. systematic investment plan for your child. It is one of the finest ways of avoiding all financial issues that can declare their presence during the education or marriage of your child. Some of the best information on this plan which can help you to understand some important aspects about it is spotlighted in below listed paragraphs.
The benefits one can have
SIP for child education and marriage comes with a full bouquet of benefits that everyone can avail. The biggest advantage of availing this plan is you can start investing money monthly or after a quarter which can be as low as INR 500. Basically there is no strict upper limit on the investment. You can invest any sum of money depending on your earnings. The plan is one of the best ways to ensure guaranteed returns as what you invest always remains safe. There is no any form of risk on your investment. To get the maximum benefits you must choose a plan as early as possible. In other words the benefits you will avail are directly proportional to the duration to plan you select. Flexibility in the payment options is another leading benefit that you can have.
What to pay attention to
Buying a systematic plan for the education and marriage of your child is something that needs you to pay close attention to some of the facts. First you must understand that not all the plans are equal in every aspect. Therefore one of your prime responsibilities is to pay close attention to the terms and conditions of the plan. Read all of them properly. It doesn’t take a lot of time. Next thing to consider is when you need the money. Choose the duration of plan or maturity date according to that. You must also compare different plans with each other in order to get the one that exactly fits our needs.
How the plan actually works
As already mentioned, people who buy this plan have to invest a specific amount of money at the end of every month, week or a quarter. The plan has a duration of few years after which it matures. On maturity a very attractive sum of money is paid to the investor. This money is probably much more than one invested during the years for which the plan is valid. As entire amount is paid one time to the bank account of the policy or plan holder, the big reasons to worry about the financial issues can be avoided up to a great extent. The amount of money paid in some plans is exempted from tax but you must consult with an expert to know more on this.