Shortage in Planning for Children goals – Please help me ?

POSTED BY Navneet Surana ON September 12, 2013 5:39 pm COMMENTS (5)

Hi ,

While reviewing my personal financial portfolio, I found that there is going to some shortages to meet my Life Goals of Children education & Marriages (2 child-12 yr and 6 yrs resp). I have to create a corpus  in span of 10, 15 and 20 years from now to fill up the gaps. Currently I’ve a surplus investible of Rs 15k per month. I think of following options

Invest in ‘Jeevan Saral’ of approx 50k pa and balance in MF / Equity / FD’s (Sriram Transport Finance @ 10.75 – 11.3% pa) / Gold ETF’s. I’ve already exhausted my options in PPF & VPF. My analysis and experience of MF’s and Equity has been sad. If we actually look at performances of MF’s over past 3,5 & 7 yrs, none of the funds has given decent 10% yoy returns. Jeevan Saral gives a Tax free return of 6% pa.

My dilemma is – how to take care of safety and surety of corpus generation by way of investing in MF (by SIP ) where things are unpredictable. Am I missing on some other better market instruments which can give a balance between Risk and Returns? My expecatation is 10-12 % returns.

Thanks all for your inputs,


5 replies on this article “Shortage in Planning for Children goals – Please help me ?”

  1. Navneet Surana says:

    Hi Ashal,

    Yes I do agree that combo insurance products may not be a good option for wealth creation. It only helps you to get a lumsum (almost pedecided) fund at a predecided time frame.
    Jeevan Saral output shall be 6% taxfree which is almost same as 8.5% IR instrument at highest tax bracket.

    Very much agreed that no MF performance shall be constant. It implies you invest, in case investment going in red, take it out (in loss) and reinvest in some other funds which might be doing good at that point in time. Risks are quite high and also requires huge time, efforts, ability to analyse the funds. At the end, if you are not lucky then u also see capital erosion.

    So question is wealth creation is not that simple as it is mentioned in various articles. There are shortage of instruments which are reliable and can be trusted. I’ve almost 2 L pa as surplus and don’t know what good way to invest (have exhausted my PPF & VPF limits). Could you suggest some reliable sites / paid services who can guide on MF & Equity share selection based on value. How about Equity Master?

    Await your response.


  2. ashalanshu says:

    Dear Navneet, you need to loom deep into you. Can a combo product from an insurance company be used for good wealth creation? The plain answer is NO. Now do tell me where do you fit Jeevan Saral then within your financial planning?

    Anybody can suggest funds today but the same ‘ll keep on performing down the line till next 15-20Y, can not be guaranteed. 🙂



  3. Navneet Surana says:

    Hi Rahman Thanks for your inputs. Let me put my question again –
    Problem Statement – While doing Financial planning , I see a shortage of Funds for my Children’s education goal. Requirement of funds shall be in 10, 15 and 20 years from now. I’ve approx. 2 lac pa surplus fund to invest for this purpose and have already fully utilized the PPF limits both for self and wife (1 lac each).
    Questions – 1. What are good options to build up the corpus in 10-15 years time span eg- Jeevan Saral, MF’s, Gold ETF, FD’s etc.
    2. Is Jeevan Saral a worthy investment option? (investment horizon -10 years).
    3. Please suggest some good MF funds (2-3) which is likely to deliver good returns (10-12%) over 5-10 years span.
    Regards, Navneet

  4. ashalanshu says:

    Dear Navneet, why are you not satisfied with 8-9% return only, if the Eq. experience is not good? In this case you need to invest more than what should be invested @ 10 or 12% return?



  5. Mustafizur Rahaman says:


    I read your complete post but thought it would be easier for people to answer if you can just your question in bullets/specific questions. I know these are related items, but separating them will also help you solving your problem in a easier way IMHO..

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