The Managing Director and CEO of Edelweiss Mutual Fund, Radhika Gupta, recently offered some insightful advice for parents looking to get their kids started in making investments. She presented a calculated plan to guarantee a stable financial future for children in a post that was posted ‘on popular request’ on March 29 on the social media platform X (Formerly Twitter).
As a longtime supporter of early investing, Gupta feels that new parents should begin making financial investments in their children as soon as possible. “On popular request, some quick thoughts on investing for a child,” stated Gupta.
On popular request, some quick thoughts on investing for a child:1. Get the docs done – birth certificate, Aadhar, PAN and then bank account. Actually very easy to do for a minor.
2. Try to find a goal – higher education is one – to save for. Break it down into the number…
— Radhika Gupta (@iRadhikaGupta) March 29, 2024
These are listed in the following order:
1. Complete the necessary paperwork, including the PAN, Aadhar, and birth certificate, before opening a bank account.
2. Look for an objective to save towards, such as a college degree. Calculate an investment amount by dividing it by the number of years you have.
3. Follow up on SIPs every month. As per Gupta, 2-3 funds are enough. She further suggested, “use a large/mid index fund for broad market exposure, mid and small-cap funds to add risk, and an international fund if you plan to study abroad to manage the currency.” “For those who asked, you can do all this without a children’s specific fund like a gift etc,” she added.
4. As you get closer to the goal, review this frequently to ensure it still meets your objectives. Gupta suggested involving the child in the process as soon as they are old enough to understand it.
5. She concluded by saying that while it’s not a perfect procedure and that you can easily make your own, it’s a good place to start. She also requested that persons who make gifts to children give units or SIPs.
She stated that she was aware of the “pain” associated with receiving three ball-pools and four strollers as presents and having to store them in a Mumbai residence.
She said that financial presents are more effective and need less room. Since being posted, Gupta’s post has received over 356,700 views on the social media platform at the time of reporting.
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