i have some funds to the tune of INR.Rs.7,00,000/-.i am aged 79 years .i would like to invest in some safe and assured growth fund .It can take a long term,as i need it for my grand daughter's study carreer,who is now only 4years.
Ans: At 79 years young, your intent to invest for your granddaughter's future education is truly commendable and heartwarming. Investing at this stage of life requires a delicate balance between seeking growth and ensuring safety, especially considering your goal for your granddaughter's educational journey.
Given your age and the long-term horizon for your investment (about 14-15 years until your granddaughter starts her college education), focusing on a conservative investment approach would be prudent. Here's a suggested strategy:
Balanced Funds:
Consider investing in balanced funds, which allocate a portion of the portfolio to equities for potential growth and the remainder to debt instruments for stability. These funds aim to offer a balance between growth and safety, making them suitable for investors looking for assured growth with moderate risk.
Fixed Income Funds:
You may also consider fixed income funds, which primarily invest in debt securities like government bonds, corporate bonds, and other fixed-income instruments. These funds offer stable returns and are relatively less volatile compared to equity funds, making them a safer option for conservative investors like yourself.
Child Education Plan:
Some mutual fund houses offer child education plans or goal-based investment solutions tailored for educational expenses. These plans often come with a mix of equity and debt investments, and they automatically adjust the asset allocation as the goal date approaches, aiming to protect the accumulated corpus from market volatility.
Consultation with a Certified Financial Planner:
Given your specific needs and age, consulting with a Certified Financial Planner (CFP) is highly recommended. A CFP can help you identify suitable investment options that align with your financial goals, risk tolerance, and time horizon. They can provide personalized advice and guidance, ensuring that your investment strategy is tailored to your granddaughter's educational needs and your financial situation.
Considerations:
While seeking growth, it's crucial to prioritize the safety of your investment. Opt for funds with a track record of consistent performance, managed by experienced fund managers. Ensure you understand the risks associated with each investment option and choose funds that align with your comfort level.
In conclusion, investing INR 7,00,000 for your granddaughter's future education is a thoughtful gesture that can make a significant difference in her life. By focusing on conservative investment options like balanced funds and fixed income funds, and seeking guidance from a Certified Financial Planner, you can aim to achieve a balance between growth and safety, helping to secure her educational journey.
