Quantum Direct Investor Information Initiative

Protect Your Child's Future With a Plan Wednesday, Feb 20, 2019

As you come across newspaper advertisements and TV commercials of a young kid dressed up in robes smiling away at the cameras with a scroll in hand, it paints quite a picture. Suddenly your mind starts racing ahead and you imagine your child in such a happy moment. But that imagination is cut short when you start thinking about the money required to secure your child’s future.

Saving for your children’s education is of utmost importance. Putting your child’s needs before yours by trying to seek the best possible education for their future requires you to prepare a sound financial plan in this ever increasing world of rising costs and rising inflation. With education becoming expensive with every passing day from primary to secondary to higher studies, it is essential to plan for it early by investing in investment avenues that deliver inflation-adjusted returns while leaving enough to meet future expenses.

1. Gather Adequate Information and Estimate Costs
You may not immediately know what your child wants to be 15 or 20 years down the line but getting a rough idea of what your child’s education in future would be the best start. With junior education currently starting anywhere between Rs. 3 lakhs – Rs. 4 lakhs a year, higher education in top reputed institutions across India is expensive and studies abroad being much more costing anywhere between Rs. 40 lakhs – Rs. 50 lakhs.

At the same time the average inflation rate (rise in costs) also needs to be taken into consideration while calculating the future costs of their education. Let’s take an example: A certain ABC school charges Rs. 25 lakhs today. 15 years from today, @ 8% annual inflation, fees would cost Rs. 79 lakhs. When you come to think about this amount as a whole, many people may not be financially ready to collect such amounts for their kids’ future needs.

Today’s ExpensesRs. 25,00,000
Average Inflation Rate8%
Period of saving15 years
How much amount needed after 15 yearsRs. 79,00,000
Note: The table above is for illustrative purpose only.

So, when you start planning for your child’s future, be realistic about assuming inflation as well.

2. Invest in Equity Mutual Funds
Just by setting aside money for your kids’ education may not be enough. You need to let your money grow in the long-run. Beating inflation could involve investing in instruments which have a slightly higher risk. Equities can be one such asset class that may give you good returns in the long run. It is important to understand that equities are more of a long term investment option, since generally equities as an asset class is expected to give good returns over a long period of time. Inflation is one such factor that could possibly erode your hard earned savings if not channelized properly.

3. Start Early and Invest Regularly via Equity SIPs
The most important thing that any parent needs to do is start saving early. Starting early gives you the benefit of the power of compounding and helps generate wealth out of your savings. If you haven’t yet invested in equity mutual funds, then now is a good time to do so via SIPs; not because of market levels but rather, because investing in equity mutual funds via SIPs helps you implement a healthy habit by way of discipline and develop a long-term approach thus letting you accomplish your long-term life goals like your children’s education.

Our Solution: As a parent all you want for your child is to be happy and financially set for a better future while seeking the best for them. Consider starting an SIP in Quantum Long Term Equity Value Fund (QLTEVF) and Quantum Equity Fund of Funds (QEFOF) - two funds that actually make a complete equity portfolio. While QLTEVF is an equity fund that follows a value style of investing that gives your money potential to grow, QEFOF is an equity fund of funds that invests in 5-10 diversified equity schemes of third party mutual funds, shortlisted after extensive research. Yes, we make investing simple for you. Thus, selecting the right investment options which consists of a fusion of these 2 funds (QLTEVF + QEFOF) in your portfolio will help you see you through your financial goal of setting a better future for your child by providing the support that he/she needs.

Conclusion...

Our objective of this article is to help you plan and protect your child’s educational future so that he/she does not face any hurdles when it comes to paying fess to accomplish their dreams. While economic fluctuations are unpredictable, planning early can give a certain amount of immunity and serve as a financial cushion during crucial times.

We also suggest you to consult your financial advisor before making any investment related decisions.

Call us on 1800 - 209 - 3863 / 1800 - 22- 3863 Or email CustomerCare@QuantumAMC.com


Product Labeling
Name of the SchemeThis product is suitable for investors who are seeking*Riskometer
Quantum Long Term Equity Value Fund

(An Open Ended Equity Scheme following a Value Investment Strategy)
• Long term capital appreciation

• Invests primarily in equity and equity related securities of companies in S&P BSE 200 index
Quantum Long Term Equity Fund
Investors understand that their principal will be at Moderately High Risk
Quantum Equity Fund of Funds

(An Open Ended Fund of Funds scheme Investing in Open Ended Diversified Equity Schemes of Mutual Funds )
• Long term capital appreciation

• Investments in portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI whose underlying investments are in equity and equity related securities of diversified companies
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.