I want to start SIP for my daughter with a monthly amount of Rs. 1500 for long term. She is now 12 years old. Kindly suggest a better option which can be help for long run. 

Ans: small cap is better as you have time by your side. Which small cap you need to reach out to a SEBI registered RIA for that as they are the right people to guide you through a define objective and goal. you can find one in your are through the link - https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13

Ans: Choosing the right investment for a long-term goal requires careful consideration of your daughter's risk tolerance, investment horizon, and financial goals. Given her young age and ultra-long-term investment horizon, a diversified equity-based mutual fund could be a suitable option.

You can go for a good flexi cap fund along with some allocation to a nice mid cap fund, assuming you will continue SIP for more than 10 years with required increment every year.

Remember to review your portfolio periodically and rebalance it as needed to maintain your desired asset allocation.

Ans: You can divide it into 3 parts.
1. Largecap & Midcap
2. Flexicap
3. Small cap

Ans: For your daughter’s education or marriage expenses, with a 20-25-year horizon, investing Rs. 5,000 per month in equity mutual funds via a SIP is a good approach. Long-term investments benefit from the power of compounding and have the potential for higher returns in equity markets.
Consider the following types of funds: 1. Flexi-cap Funds- These invest in companies of various sizes, balancing risk and returns. Funds like Parag Parikh Flexi Cap or UTI Flexi Cap are solid choices. 2. Large Cap Funds- These focus on established companies and offer stability. Examples include SBI Blue-chip and Axis Blue-chip Fund. 3. Child-Centric Funds- These are tailored for long-term educational goals, such as the HDFC Children’s Gift Fund.
Opening a Demat account in your daughter’s name isn't necessary. You can hold investments in your name under a minor account, and when she turns 18, the account can be transferred to her. Investing through mutual fund SIPs is a simple, efficient method that doesn't require a Demat account.
This strategy will help you build a substantial corpus for your daughter’s future needs over the next 20-25 years by reviewing your investments periodically.
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
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