Dear Sir, I would like to know more about child specific mutual funds, their risk and investment options. Also would like to review my financial health with you and hence would like to know your fees as well Regards, Wasim

Ans:

Below funds can be considered:

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• HDFC Index Fund – Sensex plan
• UTI Flexi cap Fund

For Selection of mutual funds, look at the portfolio of the scheme and if it looks fine than the margin of safety needs to be determined. If this is difficult to ascertain take the help of AMFI registered mutual fund distributor.

Ans: Hello & thanks for writing to me. As your time horizon is long & the goal is to build a corpus for your children over 15 to 20 years, you have rightly chosen equity schemes.

You can consider starting SIP's of equal value amounts in:
1-Axis Flexicap Fund
2-Kotak Smallcap Fund
3-Canara Robeco Emerging Equity Fund
4-SBI Bluechip Fund
5-ABSL Multicap Fund

Stepping up your SIP's by 10% or more every year will help you build a larger corpus. It is essential to periodically rebalance your portfolio to ensure that you are on the right track.

Ans: Planning for Bright Futures: Choosing Mutual Funds for Your Children's Education
That's fantastic that you're thinking about your children's education so early! With your 8-year-old and 3-year-old, you have a good amount of time to invest and grow a corpus for their future studies. Let's explore some key points to consider:

Choosing the Right Investment:

Long-Term Goal: Your children's education needs are long term (8-15 years for the elder one and 13-18 years for the younger one).

Investment Horizon: Considering their ages, you have a long investment horizon, which allows for potentially higher growth options.

Actively Managed Funds for Growth:

Given your long-term perspective, actively managed funds can be a good option. Here's why:

Outperform the Market: These funds have fund managers who try to pick promising stocks and beat the market average. This has the potential for higher returns compared to passively managed options.
Matching Time Horizon with Risk:

Aggressive Balanced Actively Managed Funds: For your elder child (8 years old, longer time horizon), consider a more aggressive balanced actively managed fund. This offers a mix of equity and debt, with potentially higher growth but also more risk.

Balanced Actively Managed Funds: For your younger child (3 years old, even longer time horizon), a balanced actively managed fund might be suitable. This offers a good balance between growth and stability.

Remember, I can't recommend specific funds. A Certified Financial Planner (CFP) can suggest specific actively managed funds based on your risk tolerance and investment goals.

A Word on Investment Tenure:

While a 1-year SIP is possible, it's generally not recommended for long-term goals. SIP (Systematic Investment Plan) is a great way to invest regularly for long-term goals. Rupee-cost averaging helps you benefit from market ups and downs. Consider a longer SIP tenure to benefit from compounding (earning interest on your interest).

Benefits of a CFP:

A CFP can create a personalized plan for you. They can:

Analyze Your Risk Tolerance: Are you comfortable with potential market fluctuations? A higher risk tolerance allows for potentially higher returns through aggressive investments.

Recommend Investment Mix: A CFP can suggest a suitable mix of actively managed funds based on your risk tolerance and your children's age-specific needs.

Review and Rebalance: Your financial situation and goals might change over time. A CFP will monitor your progress and adjust your plan as needed.

Additional Considerations:

Review Existing Investments: Do you have any existing investments? A CFP can assess their suitability for your children's education goals.

Government Schemes: Explore government schemes like Sukanya Samriddhi Yojana for your daughter's education (if applicable).

Investing in Your Children's Future:

By starting early and planning strategically, you can ensure your children have the resources they need for a bright future. Actively managed funds within a diversified portfolio can be a powerful tool for growth, but remember, they also carry risk. Consulting a CFP can help you navigate your options and make informed investment decisions for your children's education.

Don't wait! Schedule a consultation with a CFP to get started on your child's education planning journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello & thanks for writing to me.

The schemes you have chosen are good schemes. Assuming that you are able to generate returns of 12% on your investment, the value of your investment will be around Rs.7 Lakh.