Investment advice needed for girl child.

scott1391990

scott1391990

Adept
So this is my first time in my life when I have decided to invest for my child's future.

She was born in June this year and since then I am having a hard time choosing what's right for her.
Policybazaar executives seem like they just want to sell anything to the customer. Although they do clear all your doubts and help you all along, but they just won't let you go if you give them your number.
The guy at policybazaar gave me a plan from Max Life Insurance where he said that if I pay 10,000 monthly for 10 years, my child would get around 80-90 lacs (don't remember the exact amount) after 20 years. This policy would include, Life Cover, Premium waiver in case of mishap, and monthly salary to my wife in case of mishap. This seemed all good and I really wanna buy this plan. But it sounds too good to be true.

The Sukanya Samridhdhi Yojna doesn't give waiver off or the monthly salary in case of mishap and thus the policybazaar guy didn't advice on getting it.

Anybody who has more knowledge about these things, please help me as it's my first time.
Should I go with the Max Life Insurance?
 
Sukabya is really good and a safe option, rest get some Smart Scholar type thingies for higher education and stuff. SBI Life had approached me some time ago about ir and it seemed good but I don't have kids of my own so I recommended it to a friend rest I dunno
 
I think you should put in Sukanya Samruddhi due to it safety aspect and lock-in period unit she turns 18. Interest rates are decent I think.

About your other plan, that would be ULIP I think. Generally it is told to not mix insurance and investment.
10K per month x 12 months x 10 years = 12 Lakh rupees.

Then you wait for more 10 years and then you get X amount. If you post this query on subs like India investments or so, chances are people will tell you to not do it. I don't know how but you should calculate XIRR on this and if it not good then no point. Also your money is sort of locked in those last 10 years. So may be it would be better in more liquid investments like mutual fund.
 
For private companies they show the returns at 8% but actual payout is around 3% only. If Max Life is giving a guaranteed written return of the said amount then it would be good but do read all the T&C. Normally the returns are Sum Assured plus bonus at approx 3%.
 
gopal_agrawal said:
For private companies they show the returns at 8% but actual payout is around 3% only. If Max Life is giving a guaranteed written return of the said amount then it would be good but do read all the T&C. Normally the returns are Sum Assured plus bonus at approx 3%.
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Also to add, these agents paint a rosy picture and we should do lots of due deligence before we invest.
I feel the 10L invested as SIP in mutual fund over next 10 years and considering value after 20 years will higher retuns.
 
gopal_agrawal said:
There is a govt scheme for girl child through post office. I heard it is pretty good and reliable.
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Thanks. Do you know the name for it?
Adijazz said:
Sukabya is really good and a safe option, rest get some Smart Scholar type thingies for higher education and stuff. SBI Life had approached me some time ago about ir and it seemed good but I don't have kids of my own so I recommended it to a friend rest I dunno
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Thanks. Will inquire about it as I have a SBI account as well
raksrules said:
Also to add, these agents paint a rosy picture and we should do lots of due deligence before we invest.
I feel the 10L invested as SIP in mutual fund over next 10 years and considering value after 20 years will higher retuns.
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Could you help me out with SIP and mutual funds over PM or whatsapp if not a problem ? I don't have any clue with investment.
 
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I am not an expert but how about investing in land maybe buy a shop/plot/flat and its value will definitely increase in next 10~20 yrs or buy gold. Anyone with gold or land will always have a value no matter what.
 
Unpopular opinion, I guess, but don't rule out crypto either. Just because most of us don't understand it or most consider it a current fad that will go away in a couple of years, it doesn't mean there won't be crypto in future. If I were to invest for a child that they might use after a decade or two, I would at least put 25% of my planned investment capital in crypto. If I were to suggest it to someone conservative with their money, I would make that number at least 10%. It's the new financial market that is still in its nascent stage, hence the volatility, but that volatility also gives out huge returns that might not be possible in the traditional markets.
 
Buy GOLD (don't by Ornaments but Coins) on her name in small parts as per your budget, keep it in house or bank locker... physical GOLD definitely help you and her in future lot and it's value multiples in long time.

And in future if you need money for urgent expenses you/she can sell gold INSTANTLY in market (local shop) and will get good returns.
 
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I have 2 daughters (1 year and 4 years). Keeping my investments simple:

- Sukanya Samriddhi Yojana for both - almost fixed RoR and safe (I do think the rate will go down in future)
- Mutual funds (Nifty/Index fund + Blue Chip) - both my wife and I do lumpsum instead of SIP since we prefer investing in dips
- Coffee can stocks portfolio - do baseline research, pick up 10-15 stocks (which in your opinion will be both stable and give steady return over years), invest a small amount every month/quarter (whatever your pocket allows)
- Of course, term insurance is needed

IMO, this is more than enough. No need to spread yourself thin, maintaining hundreds of accounts and thinking what will happen in future.

And yeah, congrats ! Girls are the best. My 4 year eats my head morning, day or night, but I cant live without her for a day. :D
 
alekhkhanna said:
I have 2 daughters (1 year and 4 years). Keeping my investments simple:

- Sukanya Samriddhi Yojana for both - almost fixed RoR and safe (I do think the rate will go down in future)
- Mutual funds (Nifty/Index fund + Blue Chip) - both my wife and I do lumpsum instead of SIP since we prefer investing in dips
- Coffee can stocks portfolio - do baseline research, pick up 10-15 stocks (which in your opinion will be both stable and give steady return over years), invest a small amount every month/quarter (whatever your pocket allows)
- Of course, term insurance is needed

IMO, this is more than enough. No need to spread yourself thin, maintaining hundreds of accounts and thinking what will happen in future.

And yeah, congrats ! Girls are the best. My 4 year eats my head morning, day or night, but I cant live without her for a day. :D
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interest rate is quite low of sukanya samriddhi, is there something with higher returns but safe as this ?
 
Emperor said:
Buy GOLD (don't by Ornaments but Coins) on here name in small parts as per your budget,keep it in house or bank locker... physical GOLD definitely help you and here in future lot and multiples in long time.

And in future if you need money for urgent expecse you can sell gold INSTANTLY in market (local shop) and will get good returned.
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While I consider that gold would definitely be good and yes as you mentioned, no ornaments, buy biscuits or small biscuits or coins which can be utilized to make jewelry or sell easily and so on.
But usually with gold, people do not sell it unless the situation is worst. Like in my portfolio, I have no mention of any physical gold my wife has. Because it is not (by me) considered for any portfolio etc calcualations. as ideally we don't intend to sell it unless our financial situation is very bad.
 
fastapifastdisks said:
interest rate is quite low of sukanya samriddhi, is there something with higher returns but safe as this ?
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SS is just one instrument where one is putting money in. You don't have to put all but a certain amount. Like I invest in shares and equity MFs for better returns but then I also invest in Bonds / NCDs for fixed guaranteed (in most cases) returns and also invest in PFF for their EEE status.
 
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scott1391990 said:
So this is my first time in my life when I have decided to invest for my child's future.

She was born in June this year and since then I am having a hard time choosing what's right for her.
Policybazaar executives seem like they just want to sell anything to the customer. Although they do clear all your doubts and help you all along, but they just won't let you go if you give them your number.
The guy at policybazaar gave me a plan from Max Life Insurance where he said that if I pay 10,000 monthly for 10 years, my child would get around 80-90 lacs (don't remember the exact amount) after 20 years. This policy would include, Life Cover, Premium waiver in case of mishap, and monthly salary to my wife in case of mishap. This seemed all good and I really wanna buy this plan. But it sounds too good to be true.

The Sukanya Samridhdhi Yojna doesn't give waiver off or the monthly salary in case of mishap and thus the policybazaar guy didn't advice on getting it.

Anybody who has more knowledge about these things, please help me as it's my first time.
Should I go with the Max Life Insurance?
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Diversify your investment is what I would say. If your are a salaried man then small investments in gold and bond and reset in schemes looks good. if more of an adventure kinda guy, sharemarket and crypo is the way with the gold and bonds thing. This is just my thoughts.
 
scott1391990 said:
So this is my first time in my life when I have decided to invest for my child's future.

She was born in June this year and since then I am having a hard time choosing what's right for her.
Policybazaar executives seem like they just want to sell anything to the customer. Although they do clear all your doubts and help you all along, but they just won't let you go if you give them your number.
The guy at policybazaar gave me a plan from Max Life Insurance where he said that if I pay 10,000 monthly for 10 years, my child would get around 80-90 lacs (don't remember the exact amount) after 20 years. This policy would include, Life Cover, Premium waiver in case of mishap, and monthly salary to my wife in case of mishap. This seemed all good and I really wanna buy this plan. But it sounds too good to be true.

The Sukanya Samridhdhi Yojna doesn't give waiver off or the monthly salary in case of mishap and thus the policybazaar guy didn't advice on getting it.

Anybody who has more knowledge about these things, please help me as it's my first time.
Should I go with the Max Life Insurance?
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Don't believe a word of these agents unless you read the terms and the entire plan of the policy they are selling. normally they will give you the maximum you can earn from the policy if everything goes well, and be rest assured that everything will not go well for the 10 -20 years you'll be invested in the policy. expect anywhere at best 8% return and worst about 3%. there are a lot of hidden charges that they won't tell you. I get charged about 3 different types of charges on my ULIP on monthly basis, its not much like 20 -30 rs but still something that is going out of your investment.

As others have said, diversifying your investment is the best option, also factor in the risk you are willing to take, I wouldn't invest in cryptos or even if I would it wouldn't be more than 2-3 % of my total investment because I am at a stage where I don't want to lose any of my investments and not willing to take that high of a risk.
It also depends on how much you want to invest per month.

I recently watched this video, which makes a lot of sense:
 
xkcd0137 said:
https://www.reddit.com/r/IndiaInvestments/comments/60f8hf

Read the above post for a better idea.

1) SSY

2) invest SIP in an Equity Index fund like UTI Nifty Index meant only for her

3) get a health insurance addon for kid

4) maybe even start a term insurance, her as a nominee

5) don't go for ulips or any other product by insurance companies.
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This is what I was going to post.
Most of what you give these companies, goes into govt securities and stock market. So cut the middle man do it yourself.
SSY and others are good cause there is no tax on what you earn. Depending on your tax bracket, that gives you much higher return than what paper percentage shows.
Invest in mutual funds or index funds. Keep selling in between to realize profits and use the 1 L capital gain tax free limit each year.
Getting a Health insurance for your family is also great.

Most important advice - Do these and then focus on earning more. No amount of investment will cover for actual earnings.
 
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