1. Mutual Funds (MF)– Investments for children is typically for the long term. And for the long term, nothing to beat Mutual Funds, especially the equity and Hybrid funds, whether for flexibility of investments, returns, or taxation. There is no age bar to start investments in mutual funds. Anyone under the age of 18 (minor) can invest with the help of parents/legal guardians until the age of 18, after which the funds get transferred in their sole names.  It’s important to have clear investment goals, like investing for higher education, marriage, start-ups etc.
2. Sukanya Samriddhi Yojana (SSY)– Tailored for the financial security of girl children, SSY is a government-backed savings scheme offering fair interest rates and tax benefits. It’s a great long-term savings option under the “Beti Bachao, Beti Padhao Yojana”.
3. National Savings Certificates (NSC)– Available at any post office, NSC is a fixed-income investment scheme perfect for small to mid-income investors who wish to take no risk at all. It provides a safe way to invest while saving on income tax though returns are quite muted.
4. Public Provident Fund (PPF)– PPF is ideal for risk-averse investors, offering safety and stability. A PPF account can be opened for your child, and once they turn 18, they can manage the account, making it a great long-term investment.
5. NPS Vatsalya Scheme – Introduced in Budget 2024, this scheme allows parents to open a National Pension Scheme account for their children. Contributions can be made until the child turns 18, ensuring long-term financial security.    Choosing the right investment isn’t just about securing your child’s finances—it’s about empowering their dreams. With these smart options, you’re not just building a financial foundation; you’re creating a future where your child can thrive. Start today, and give them the strong start they deserve.

(Contributed by Prerna Pattanayak, Financial Planner, Team Vikrant, Hum Fauji Initiatives)

Decoding the Hindenburg Gambit: A New Era of Economic Interference in India?

How to get fully paid even when you have exhausted all your Sick Leaves?          

Get fully paid even if you have exhausted sick leaves. A patient might lose weeks’ worth of income due to hospitalization, which might add to the already existing financial burden. This is where the Convalescence benefit in health insurance policy saves the day.

This benefit acts as a financial cushion, covering the income you might lose due to hospitalization. While many health insurance plans include it, if yours doesn’t, you can often add it on—because who wouldn’t want that extra peace of mind?

Here’s how it works: if you’re hospitalized for 7-10 days, the convalescence benefit kicks in, allowing you to claim for lost income. Plus, it might even cover the travel costs for your family members to visit you in the hospital.

Before choosing this benefit in health insurance, consider these key points:

• Hospitalization Period: You must stay in the hospital for a minimum period, as specified in your policy, to qualify.
• Availability: This benefit is available with both individual and group health insurance plans.
• Add-On Option: If not included in your policy, in most cases you can add this benefit separately.
• Additional Coverage: The convalescence benefit, also known as a ‘Recuperating Benefit,’ is extra and can be claimed alongside your regular medical coverage.

Remember, you can only claim this benefit once you’ve met the required hospital stay. If you’re discharged earlier, it won’t apply, so be sure to review your policy details to understand what’s covered.

By understanding and utilizing the convalescence benefit, you can protect your income and ease the financial strain of recovery, making your health journey a little smoother.

(Contributed by Aman Goyal, Relationship Manager, Team Vikrant, Hum Fauji Initiatives)

Question:- Should I invest all my funds in equity funds if I do not need them for the next 3-5-7 years?

Our Reply:- Investing all your funds in equity funds for the next 3-5 years, if you do not need them, can be a potentially rewarding strategy, but it is also considered a risky or volatile move. Here are a few points to consider before moving ahead:-

1. Risk Tolerance: Equity funds can go up and down in value. If you’re okay with seeing your investment fluctuate and can stay calm especially during dips, equity funds might be right for you.
2. Diversification: Don’t put all your money in one place. Even if you choose equity funds, spreading your investment across different funds can reduce risk.
3. Financial Goals:  Make sure equity funds fit your overall financial goals. Think about whether you’re comfortable with the potential ups and downs of the market while looking at when you need the money for your next goals.
4. Asset Allocation: Check if investing in equity funds balances well with your other investments. A mix of different types of investments can help manage risk and volatility.
5. Liquidity: Ensure you have cash on hand. Sometimes, selling equity funds quickly in a volatile market might result in a loss.
6. Emergency Funds: Keep some money aside for emergencies, so you don’t have to sell your investments at a bad time.

While investing in equity funds for 3-5 years can be appealing especially when the markets are in a bull frenzy, it’s crucial to consider your comfort with risk and your overall financial goals. A balanced approach, including a mix of equity funds, debt funds, and other investments, can help you achieve your goals while managing risk.

(Contributed by Team Prithvi, Hum Fauji Initiatives)