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Edelweiss’ Radhika Gupta shares 5 ‘quick thoughts’ on investing for children

New Delhi,UPDATED: Mar 30, 2024 16:46 IST

Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, has provided invaluable advice for parents looking to initiate their children’s investment journeys in a post on X. In her post, which was shared “on popular request” on March 29, she outlined a strategic approach to ensure a secure financial future for young ones.

According to her post, here are “some quick thoughts on investing for a child”:

1. Get the documents done – Birth certificate, Aadhar, PAN and then the bank account. Actually, it’s very easy to do for a minor.

2. Try to find a goal – Higher education is one to save for. Break it down into the number of years you have to figure out an investment amount.

3. Do monthly SIPs – 2-3 funds work. You 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 about studying abroad to manage currency.

4. Review this periodically as goals change, make it more conservative as you get closer to the goal. Involve the child in the process if they are old enough to understand.

5. This isn’t a perfect process and you can easily create your own. But it’s enough to start.

See her post here:

On a lighter note, Radhika drew attention to the merits of financial gifts as an alternative to conventional presents.

Since being posted online, Radhika Gupta’s post garnered over 1 lakh views on X with several people showing interest in the plan in the comments section of the post.

Published By:

Ashmita Saha

Published On:

Mar 30, 2024

Read More: Edelweiss’ Radhika Gupta shares 5 ‘quick thoughts’ on investing for children

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