Edelweiss MF’s MD and CEO Radhika Gupta shared some tips for parents wanting to start investing for their children.
The first tip was to get all the documents ready: birth certificate, Aadhar, PAN and then a bank account. Gupta added that it is easy to do for a minor.
Gupta also urged parents to find a goal to invest for their children. For example, higher education can be something that can be a goal for savings.
Gupta also gave tips to start monthly SIPs. “2-3 funds work. Can use a large / mid index fund for broad market exposure, mid and small cap funds to add risk, and an international fund if you are thinking study abroad to manage currency,” she wrote.
“Review this periodically as goals change, make it more conservative as you get closer to the goal. Involve the child in the process as they are old enough to understand,” the CEO wrote.
Finally, if someone likes to gift some things to the children, they should be requested to gift units of SIPs. “Financial gifts are productive and take less space,” she said.