Investment options available for children
- Fixed and recurring deposit. It is a safe investment option, with a fixed interest rate.
- Public provident fund.
- Sukanya Samriddhi Scheme.
- Mutual funds.
- Child plans.
- Stocks and ETFs.
- Gold ETFs.
What is the best investment account for a child?
Let’s dive into each of these.
- Roth IRAs. Roths are a great investment vehicle not only for adults, but also for children.
- Coverdells. Coverdells are very similar to Roths.
- UGMA/UTMA. These odd-sounding terms refer to the Uniform Gift to Minors Act and Uniform Transfer to Minors Act.
- 529 plans.
- Life insurance.
Where should I invest my child’s money?
Here’s how to save money for your kids:
- Create a children’s savings account.
- Open a custodial account.
- Leverage a 529 college savings or prepaid tuition plan.
- Open a Coverdell education savings account.
- Use your Roth IRA.
- Open a health savings account.
- Set aside money in a trust fund.
What is the best investment for a child’s education?
There are several investment options to save for child education needs – Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) or equity mutual funds being the top three choices for many parents.
Where should I invest for my child’s future?
Here are three investment products that may be used in combination to meet your kid’s financial goals over the long term.
- Public Provident Fund (PPF) PPF remains a time-tested investment for over several decades now.
- Sukanya Samriddhi Yojana (SSY)
- Equity mutual funds.