Hi i have 3 kids (twins 2nd time around ) from last 4 years i have been investing only in PF for all 3 . Now i have some surplus income of 15k per month pls suggest some aggresive mutual fund or stocks . which can help me for their education 15 years later . also i read an article that buying directly from AMC helps me save 1-2% is that true ?

Ans: You may consider Hdfc Index Fund - Sensex Plan - Regular Plan - Growth

Yes, these funds can be continued for 10 to 15 years.

Ans: Hello Norris. I understand your goal is for child education with the time horizon of minimum 4 years. Taking all factors into consideration, I would suggest you invest approximately 1 L monthly in the Large & Midcap, flexicap, Midcap and small cap categories in order to achieve your goal.

Ans: Considering an 8-year investment horizon for your child's post-graduation, you can explore equity mutual funds for potential growth. To estimate the required amount, determine the expected cost of your child's post-graduation education and factor in inflation.

For aggressive growth potential, consider allocating a significant portion to diversified equity funds, preferably large-cap or multi-cap funds for stability. Additionally, you might allocate a smaller portion to balanced funds or hybrid funds to manage risk.

It's crucial to select funds with a proven track record, experienced fund managers, and consistent performance. Regularly review and adjust your investment strategy to ensure it remains aligned with your financial goals and risk tolerance.

Consulting with a Certified Financial Planner can provide personalized guidance and help you determine the appropriate investment amount based on your specific needs and circumstances. Together, you can create a tailored investment plan to secure your child's future education.

Ans: Investing for your child's education is a thoughtful decision that requires careful consideration. I appreciate your dedication to securing their future. Let's delve into selecting the right mutual fund for this purpose.

Understanding Your Investment Horizon and Risk Appetite
Investing for your child's education over a ten-year period is a commendable strategy. Since you're comfortable with high risk, you have the potential for higher returns over the long term.

Evaluating Mutual Fund Options
When considering mutual funds for your child's education, it's essential to focus on funds with a proven track record of long-term growth. Look for funds managed by experienced professionals with a history of delivering consistent returns.

Active vs. Passive Management: Making the Right Choice
While index funds offer low fees and broad market exposure, they may not outperform actively managed funds, especially during volatile market conditions. Actively managed funds, overseen by skilled fund managers, have the flexibility to adapt to market changes and potentially outperform the market indices.

Emphasizing the Benefits of Active Management
Actively managed funds offer the advantage of professional oversight, where fund managers actively research and select investments to maximize returns and mitigate risks. This approach can be particularly beneficial in volatile markets, helping to navigate uncertainties and capitalize on emerging opportunities.

Disadvantages of Direct Funds and the Benefits of Regular Funds through a Certified Financial Planner
Direct investing requires significant time and expertise to research, select, and monitor investments effectively. By working with a Certified Financial Planner (CFP), you gain access to professional guidance and personalized investment strategies tailored to your financial goals and risk tolerance. Through a Mutual Fund Distributor (MFD) with a CFP credential, you can benefit from ongoing support and portfolio reviews, ensuring your investments remain aligned with your objectives.

Making an Informed Decision
Consider mutual funds with a focus on sectors or themes aligned with your child's educational aspirations. Diversification is key to managing risk, so opt for funds with a well-balanced portfolio across various asset classes.

Conclusion
Investing in mutual funds for your child's higher education requires a thoughtful approach that considers your investment horizon, risk tolerance, and the expertise of fund managers. By leveraging the benefits of active management and seeking guidance from a Certified Financial Planner, you can make informed decisions that lay the foundation for your child's bright future.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in