Investment Plans For Newly Born Child
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Return in SSY is Not Attractive , Also Decreasing In Regular interval
My parents opened a PPF in my name when I was in elementary, and I suggest you do the same. You can make minimum deposits within the lock-in period and once your child starts earning, she can treat it like a tax saver FD (since post lock in, extensions are 5-year intervals)
Ppf now earns only 4 % interest for minors till they attain 18years of age. So waste for minors.
Avoid Sukanya Samridhi, do sip in NiftyBees and GoldBees
Start SIPs in mutual funds
Put 35% in small cap ,
20% in mid cap,
20% in large cap,
Rest 25% in multi cap
Can we invest on the name of Child in SIPs? No Pan Card
for mutual fund investments is PAN card necessary or just a baby Aadhar card will suffice ?
Best ROI is in real estate, gold and stocks.
For stocks, buy index ETFs - either SIP or buy on dips. And dont sell it when market fluctuates. Keep it separate from your other stock investments.
You can invest a certain % in gold ETFs too if you want.
● Public Provident Fund (PPF as a capital protection measure. However, net of inflation, it still might have negative IRR.)
● ELSS (if the child is minor or the income from his file is getting taxed to the guardian, then Equity Linked Saving Schemes are an effective way to aim for 'market linked' returns, whose tax-adjusted yield is often more than the fixed income products.)
● Gradually building the corpus for investing in such real estate, which TODAY seems even outside the outskirts of the town or may not develop for even 15-18 years.
● Alcohol, wine cellars or if none are available for investments, then maintaining such facilities as required for the safe keeping of exquisite alcohol with insurance for the stock.
Depending on whether they are packaged or still in the barrels, the aged alcoholic drinks can later fetch reasonable returns.
● Sometimes, looking at companies, groups with stable management and relatively non-shady promoters, relatively clean management.. there is no harm in investing in direct equities either, of-course by showing the assets.. directly in the books of the child.
many FMCG companies have stood the test of time, ancillary industries (say: tyres) have outperformed peers (Ceat, MRF, Bridgestone, Michelin type groups have fared well despite all the economic cycles), infrastructure projects companies too are often a reasonable hedge against capital erosion. (I agree, there were and are Enrons, but there also are Siemens, Larsen and Toubros.)
classic well diversified pharmaceutical companies, companies thst are into diagnostics .. too are unlikely to have a sudden catastrophic failure.. from which they might never recover.
I mean, the Olympus fraud https://ft.com/content/fb6974b0-9066-11e1-8cdc-00144feab49a, Lehman Brothers aren't THAT far ancient to get completely wiped from our memory.
what are the odds of a Novo Nordisk (which has a better debt rating than its home country), Roche Diagnostics failing?
Ironically I mentioned Roche Diagnostics on a day which U.N. now treats as 'world diabetes day'.
Philips is another name, whose diagnostic equipment are invariably in almost every ER, Neonatal Intensive Care Unit, trauma care facility, triage rooms, clinics.
Thus, unlikely for the investments, capital to erode in stable, professionally managed groups.. when one is continously invested in them. (Stock splits, bonus issues, rights offers, dividends matter.. besides just the valuations.)
https://livemint.com/money/personal-finance/happy-childrens-day-2024-top-investment-options-to-secure-your-kids-future-ppf-bank-fd-mf-sip-nps-and-more-11731486476252.html
DO NOT invest in Sukanya , FD, PPF ..all govt schemes to fool the fools ... To save under section 80C. Always chose tax saver mutual funds (3 year lockin period). Best invest in stocks like laursen and torbo, reliance, kotak, HDFC ,( 30% in adani power n tata power) ... After ten year.. be ready to slap yourself after comparing sukanya and stock market returns 
Which are tax saver mutual funds?
Sbi magnum mutual ful ( only for kids available)
Invested in PPF.. 7.5% interest per year... Invested in adani power 1 lac at 25 rupees. Adani power is at 550 rs now. Missed selling it at 900 rs. Will add more adani stocks like port green n power fr 20 years
Investing in anything returns with less than 15% in year is a shameless thing... Sukanya is to benefit govt... But many don't have knowledge about finance depreciation inflation. So can't help it. They will lose lot of mny in such sukanya govt schemes.
1 Option: buy land
No mny and illiterate? Option 2: buy gold
Option 3: basic knowledge of finance.. buy ETF or MF
Option 4: ve stock market knowledge: buy stocks for long term / keep 50% for trading wen market is on discount.
Pro tip: every year book LTCG n reinvest... Use nonsalaried fr stock trading n investment... Try IPO from multiple accounts
buy 1 cent land on Moon
All those saying MF / SIP / Land / Gold / ETF .. etc
These one may be already doing on himself's name. These options are nothing new. Whatsoever you do the tax will be included in the Parent's Name ( except PPF/ SSY).
Hence I would suggest Invest with a pre-Defined goal , be it on your name or child's name. It doesnt matter, as your sign / decision is applicable until child is major
Specifically, I would suggest Open PPF or SSY as soon as possible and in initial 7-10 years dont invest heavily as it would be lock in. ( be it just 1000/- per year )
PPF becoz it is EEE after 15 years it is tax free and 5 years extension possible.
SSY only and only for a girl child so why not take that advantage too.
The idea is Invest in both MF & PPF / SSY ( but not heavily in initial years ). Both These scheme has difference pros and cons.
I am also investing in ELSS to save tax in the initial days. Not no use of this ELSS scheme. Can I stop and invest in normal MF or continue in ELSS also gives the same returns?
By this way, the gains wont be taxed in the individual's account.
And the whole Amt / Capital can be used for Child's Goal.
Gold ETF OR Gold mutual fund which one is good?
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Avoid Sukanya Samridhi, do sip in NiftyBees and GoldBees
Start SIPs in mutual funds
Put 35% in small cap ,
20% in mid cap,
20% in large cap,
Rest 25% in multi cap