Thread by @Finology_Quest

Planning to invest for your Child's future?👩‍👩‍👧

This thread is for you🧵⤵️

This #ChildrensDay take a step ahead to make your Child's future secure

#childhood #investing

Asset allocation needs to be in accordance with the current life stage. Have a look at the two major phases which require substantial financial resources:

• Higher studies
• Post-education life (Including weddings)

Considering the soaring inflation rates📈 & higher cost of living particularly in metro cities, education alone demands a large share of your salary.

A part of your salary saved regularly is not enough to finance it.

You need to start investing at a particular time in anticipation of the amount of funds you’ll require at later dates.

⏩Things to account for include: inflation, compounding rate of investments, monthly and yearly investment segregation and time period before maturity.

Let’s understand this with an example: ⏬

Asset allocation depends a lot on the time period. The longer the time frame, the more growth is required to beat the soaring inflation.

Experts suggest investing in fixed-income instruments for the short term and equity for the long term.

A time frame of 10 or more years is feasible for investing in equities as they give higher returns whereas, in a period of less than 5 years, it is better to stick to bonds, Bank FD etc.

⭐️The important thing to note is that you should segregate your funds and accordingly decide on an investment pattern that matches your risk appetite and gives your return at the required time periods.

Confused about the various investment instruments? Head to Quest by Finology to know more about the various instruments at your disposal to help you plan a better financial future.

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