Children are the world for all parents. They want to give the best to them their education is the top priority. The rise in education costs is a big hurdle. The cost of education has risen over 150 per cent in the last 10 years and this trend is expected to continue, which makes it even more important to consider investing for children.

Every parent wants best possible education for their children without any financial hurdle. So it becomes significant for parents to invest in best options to meet their educational expenses and secure their future.

We have identified three top investment options for your child -

Invest in Gold

Gold is a hedge against inflation during volatile times. Gold ensures your risks in the financial markets are hedged. You should invest in gold either through ETF or gold mutual funds, or sovereign gold bonds. It is advisable to avoid physical investments in gold in order to reduce the risk of storage and the cost associated with the physical holding.

Insure to protect future goals

You should also take proper term insurance cover for yourself to secure your child against any unforeseen event. Though these things do happen, but the probability or chances of happening such events would be low or cannot be quantified. It will reduce or avoid the financial impact on the lives of your dependant in cased of unforeseen events. Make sure that the future costs related to your child’s requirement are adequately covered in this insurance.

Invest in Equity Mutual Funds

This should be a top priority because of its longer time frame of 10-15 years for generating good returns. And the best mode of investment is SIP. A monthly SIP of Rs 5,000 in equity mutual funds for 18 years can fetch you Rs 34 lakh, assuming a modest return of 12 per cent per annum. If you consider an inflation of 6 per annum, this amount would more than suffice. Equity funds have historically generated 12-15 per cent per annum returns. Using SIP is one of the best ways to average your cost over the long term.