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How should I invest Rs 1 lakh for the future needs of my one-year-old daughter?

How should I invest Rs 1 lakh for the future needs of my one-year-old daughter?

My father has gifted my daughter Rs 1 lakh on her first birthday. Please suggest how to invest this for her future education and marriage needs.

Ashok Reddy, Guntur

Starting early with investments in equity funds provides you the benefit of gains from the power of compounding. You can also benefit from the market cycles that will help grow your investments in the long run. Ideally, you should make systematic investments in diversified equity funds instead of lump sum investments. You can deposit the Rs 1 lakh in your bank or even a liquid fund and start a SIP in a good fund from our Stellar List for a sum that you are comfortable with for the long term. Make sure to invest regularly and also track the performance of the fund that you have invested in regularly to assess its progress towards your financial goals to initiate any changes in fund selection, if necessary.

olmdesk@outlookindia.com