What investment strategy should NRI parents take on their children's plans?

Are you an NRI parent with grand aspirations for the kids' future in India?

While investing in traditional financial instruments, the parent would wonder about unforeseen circumstances cutting short those plans. This is where tailored investment tools ensuring your child's financial stability can come in handy.

These plans include a life cover, providing a legacy 10 times the annual premium, and a waiver of premium feature, ensuring the insurance company covers future premiums. Child plans start as early as 30 days and the market-linked plans easily beat the education inflation rate of 9-10 per cent. With a proactive financial strategy, you can safeguard your child's future.

Let's delve into how these plans cater to the unique needs of Non-Resident Indians (NRIs).

Market-linked plans

Striking the right balance between risk and safety is key. Market-linked plans offer NRIs the chance for higher returns, capitalizing on market movements with a growth-oriented approach. ULIPs (Unit Linked Insurance Plans) are ideal for those comfortable with market conditions.

Historically, they've yielded 14-15 per cent returns in favorable Indian market conditions, making them valuable for beating education inflation. ULIPs provide flexibility in asset allocation, catering to risk appetite and financial goals. With various fund options and excellent market-linked returns, ULIPs stand out as versatile investments for NRIs.

Guaranteed income plans

Cautious investors find solace in guaranteed return child plans, prioritizing stability and predictability. These plans focus on capital protection, ensuring a secure foundation for financial planning. Offering competitive returns up to 7.5 per cent, these plans eliminate market volatility risk.

Maturity amounts are fixed and tax-free for annual premium payments up to Rs500,000, contributing to your corpus. Structured payouts ensure regular funds for various financial milestones in your child's life, promoting financial discipline and responsible financial management.

Best of both worlds

Child capital guarantee solutions provide a balanced approach. Your initial capital is 100 per cent secured, offering stability, while potential gains from market upsides ensure attractive returns on investments. This balanced approach suits investors seeking both security and growth in their child's financial portfolio.

NRIs can secure their child's future through child plans in India that provide a balanced mix of security, returns, and tax benefits. Whether choosing guaranteed plans, ULIPs, or child capital guarantee solutions, early and strategic investments pave the way for a financially stable and secure future for your child.