Don't Make Roads for your kids , but teach them to make their own roads,
Ensure you have created a Run way so that they can take off very well in life when they complete their Education of their choice and Start their Professional Journey
For Education of our kids after 12th We Spend sizable amount in form of fees and other expense , which is very much necessity for the bright future of the kid . The same to be continued but can be done in different way which not only fulfill the objective but also can give sizable tax benifits besides setting strong finacial foundation . Simple example given below with implementation of this idea .
Normal case - Suppose fees is 1.4 lacs per annum then parent has to earn 2L for this and after deducting Income tax 1.4 L will be paid for the fees . For say course of 5 years it will be 10L out go from parent side .
Proposed idea - Manage to invest 10L in your child name (18+) in very good stocks . Use Derivative, Dividend , Capital appreciation technique and earn 2 to 2.5 L per annum. This will take care of fees besides the original amount will keep growing year on year . Live case given below with actual year on year profits and accumulated value for investment of 12L
If your kid is not 18 , for the time being you can open ppf account as minor with parents as joint holder or open one separate Mutual fund for your kid ,till kids become 18 . Once your kid turns 18 , open there separate account with hdfcsky , which becomes self managed account taking care of future education expenses besides growing to sizable value when you kid gets into profession life completing the Education. This creates a strong financial foundation on which he/She can build up next level focusing more on their interest .
For more info message to 6352681215
21-22 for initial investment of Rs 12L in feb 22 about Rs 30000 Profit encashed .
Actual ICICI P&L list (LIVE SAMPLE CASE )
