Let the money grows with your child

Planning for a child future is a first responsibility for every parents. If you follow the simple procedure as described below your kid will be a millionaire at the age of 16. There is no magics or gimmicks in that. This is where the power of  compounding plays its role. As the years grows the principal of your investment and the interest will grow rapidly at a rocket pace.

So lets get in to the point ,

Invest 2 lakhs when your child is at the age of 1 in any of the 5  top equity diversified Mutual Fund.
Just let that investment to grow for 16 years. When your kid turns to 16 you will see the miracle by yourself.

The 2 lakhs you invested today will accumulate to 13 lakhs assuming 12% annual return in 16 years.
For the past 5 years Indian Mutual Funds has given atleast 18% annual returns. Even some of the funds has given 40% annually.

This is the power of compounding. Check out this article http://imakemillion.blogspot.com/2011/08/how-to-earn-crore-power-of-compounding.html and see how its works

See the top performing mutual funds in India in 2011(http://imakemillion.blogspot.com/2011/08/top-5-india-mutual-fund-pick-for-2011.html)

So invest today and reap the benefits in the future.