4 Reasons Why You Need Equity Funds For Your Child’s Future
1140
There are many investment options available to you when you are investing for your child’s future needs like higher education. Here are four reasons why you must invest in equity mutual funds.
Higher returns after inflation’s impact The cost of higher education has grown annually by 10-12% in the last decade. To save enough, invest in equity funds. They invest in equities, which typically provide the highest growth among alternatives over periods of 8-10 years, or more.
Benefit of professional fund management Mutual fund offers you expertise of fund managers for managing your investments at a very nominal cost.
Tax advantage There is no tax on the capital gains you make on your equity fund investments which are more than one year old. That’s great when you have to save for your child over 8-10 years or more.
Freedom to invest small amounts You can invest in an equity mutual fund through a systematic investment plan (SIP). It allows you to invest as little as Rs 500-1,000 per month, an amount which you can increase with pay hikes.
We hope you found this useful. For more, download our mobile app, visit our website www.fundoomoney.com and subscribe to our YouTube channel.
