Child education plan
The ultimate goal of every parent is to provide his or her child the best opportunity to grow in career. It is of utmost importance that proper planning is done to secure the future of your child. The investment plan for child helps and by the time your child is ready to go to college, you will have a sufficient amount of funds. This will get rid of your worry about the high cost of education.
Effect of General Elections on the Stock Market
We are unaware of the situations that will affect the stock market in 2019 as sentiments of the people are unpredictable. Share markets may or may not remain volatile but as an intelligent investor, make a judgment of the market before investing in mutual funds. It is advisable to invest before the general elections 2019. The above mentioned mutual funds by Kotak are a good option to invest in 2019.
Importance of Child Education Plans
Child plans serve two purposes like they provide insurance, as well as investment which secure the future of your child. Hence, the child education plan does the work of a shield which protects a child from all unfortunate circumstances in the coming future. The best child plans ensure that by the time your child attains 21 years of age, the desired funds are available for his or her studies. There are a number of companies in the market selling child plans and for that reason, it is a very difficult choice for a layman to decide a best child plan for the education of a child. It can however be taken care of by deciding what type of a plan you need, what are the benefits provided by the plan, what is the term for paying premiums, the tenure of the plan, and premium rates.
Best child education plan to suit your child’s needs
Do not struggle hard to find the best child plan for your child. Kotak has a very systematic plan designed for the benefit of the children and this plan is called Kotak Head start Child Assure Plan. This child education plan is the best option to invest in 2019. This plan provides 7 funds to suit the risk-taking ability of all investors. The mutual funds offered by this plan are the classic opportunities fund, frontline equity fund, balanced fund, and dynamic bond fund. It offers the flexibility of withdrawing money after the completion of 5 policy years through partial withdrawals. It also offers the facility of switching between investment funds. The full amount of fund value is paid on the maturity of the policy. The tax benefits can be taken care of under section 80 C and section 10 (10 D) of the Income Tax Act of 1961.
Some Mutual Funds operated by Kotak Mahindra
Kotak Mahindra caters to the needs of investors from different backgrounds. They give stress to wealth growth in the long run and also to mutual fund schemes with low risk, along with generating more income. Some of the top Kotak Mahindra mutual funds are:
1. Kotak Mahindra Equity Funds, which are schemes that have selected around 60 companies with high performance in the domestic, as well as global market.
2. Kotak Mahindra Tax-Saving Equity Funds: They are known by the name Kotak Tax Saver and are the best option for investment in tax-saving mutual funds.
3. Kotak Mahindra Debt Funds - They provide good returns to investors.
4. Kotak Mahindra Hybrid Fund – Being hybrid in nature, it offers the best traits of equity and debt schemes.
5. Kotak Mahindra Liquid Funds, which are one of the ideal products of Kotak fund scheme.
6. Kotak Mahindra Fund of Funds – They consist of various mutual fund schemes like Kotak Asset, Allocator Fund, Kotak Gold Fund, Kotak World Gold Fund, and Kotak Global Emerging Market.
7. Kotak Mahindra Exchange Traded Funds: They give good returns to investors.
Some of the leading Kotak mutual funds to invest in 2019 are Kotak Standard Multicap Fund-G, Kotak Corporate Bond Fund Standard Plan, Kotak Credit Risk Fund and Kotak Dynamic Bond Fund.
Some Best Performed Mutual Funds in 2018 of Kotak Mutual Funds
Although Kotak provides a lot of choices for investments in mutual funds there are some very popular and reliable fund choices that you can consider for investments and they are:
Kotak NV 20 ETF- Dividend
Kotak US Equity Fund-Direct - Growth
Kotak US Equity Fund - Standard Plan
Kotak Sensex Exchange - Traded Fund
Kotak India EQ Contra Fund Direct- Growth
Investing in Mutual Funds via SIP
Money which is left in fixed deposits accounts does not yield much profit as compared to investments done in mutual funds through SIP. These funds can be used for a child education plan. You should know about a company in which you can make the best SIP investment and check the profile of the company picked by the fund house to understand its performance in the past few years. This can be done by reading details given in the scheme documents. Moreover, you should also have an understanding of taxation on SIP, which depends on the type of mutual fund in which you want to invest and when you redeem the investment. For instance, the returns which you get from equity mutual funds have no tax on them if you redeem it after 1 year but if it is redeemed before 1 year, then you have to pay a tax of 15% on all your gains.
If you are to invest in tax saving mutual funds, SIPs are always advisable. If SIP is used to invest in ELSS mutual funds, then you are entitled to claim tax deductions up to Rs. 1.5 lakh under the section 80 C of Income Tax Act.
Benefits of Investing in Kotak MF Child Plans
Kotak Mutual Funds offers a lot of feasibility when compared to other mutual funds. Kotak has well-experienced managers who provide suggestions on different schemes and information about the best child education plan and the ease of its operation. Moreover, they offer a range of investments products. The online portal offers the convenience of choosing from different mutual fund investment options from the comfort of your home.
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