Wednesday, April 24, 2013

Planning funds for your children

Do the below make sense for children's future planning?

Mutual funds:
If we can get a MF which gives

- 10% return annually, then by investing 7750 per month, we can get a crore in 25 years.
- 12% return annually, then by investing 5625 per month, we can get a crore in 25 years
- 15% return annually, then by investing 3450 per month, we can get a crore in 25 years.


PPF:
Make a PPF account for your child.
It gives 8.7% yearly.
Lock in period of 15 years
Max - 1L
Parent will not get tax benefit if he/she already has a PPF in their name (max of 1L tax benefit - all accounts summed up together)

What are your thoughts on the same?

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