Despite this change, meeting Indian parents think their child's dream remained the same. The bond with children is much stronger than in most Western and Asian countries.

As the child grows, daily necessities and pleasures of becoming a great event-based charges. These events could be education, work, marriage, or help your child buy a home. In order for these efforts, meticulous and scientific planning is done to ensure that you do not have to make compromises to offer your child. The future is uncertain, especially in economic terms. But what we do today because the future of our children to fall much later.

When the price per kilo, some vegetables have gone through the RS 100, may be tempted to ask a simple question: "How to invest in various investment opportunities to balance risk and return to my small savings per month?" The answer is simple - to mutual funds.

There is no other product can give you an easier, more efficient, practical and operational, especially, an opportunity for small investments. When you give your child a mutual fund will not only give them a gift that continues to grow or accumulate over time, but you will also be helping them learn more about the economy and benefits of investing their money.

Mutual funds invest in a variety of stocks of large companies with a marginal risk of high yield fixed income instruments, real estate, bonds and most-favored asset class now - gold. Nobody can predict how the stock market will behave in a given year, much less predict what the stock market will be within a few years the line. This does not mean that we are powerless. We have a tool called asset allocation to cope with the vagaries of the markets.

Asset allocation refers to how to divide your money among different asset classes and can be viewed as a map to reach the destination at a time to finance your child's dream. Mutual funds are diversified in nature and asset allocation is inherent in them, making them a good investment avenue for our savings.

Mutual funds are professionally managed and easily liquidated. You can start by investing in them for no more than RS 500 or start a micro-sip lower RS 100 included increasing the riskier asset classes such as equities, we can increase the expected return.

Roads variable yields, mutual funds and ULIPs for example, can not give you good returns than bank deposits, but over a long period, these products outperformed fixed deposit or return the products. Over the last 10 years on average, gave fixed deposits CAGR of 7.2%, while the stock index (Sensex) has given more than 16% and gold returns over CAGR of 18.5 %.

Source: [ET]