Look Beyond ULIPs for Your Child’s Future

Look Beyond ULIPs for Your Child’s Future


While ULIPs are a good investment option for securing your child’s future, there are other options that can also help you. These investment instruments can provide you with funds to meet your child’s requirements in the future.

In this article, we will discuss a few investment options that can help you secure your child’s future.

One of the most important concerns for every person is securing their child’s future. Hence, many opt to invest in unit-linked insurance plans (ULIPs) because of the benefits these policies offer.

What is a ULIP?

A ULIP policy is an insurance product that provides the benefit of insurance as well as investment. A part of the premium is invested for life cover, and the other part is invested in different instruments like equity, debt, etc. Therefore, by investing in a ULIP, parents can provide financial protection to their child with life cover and accumulate a huge financial corpus after a long term. However, there are other investment options that can also help parents build funds for their child’s future.

Investment Options for Securing Children’s Future

Mutual Funds

Mutual funds are investment options that allow investors to invest in equities, debts, etc. Mutual funds are a great option for building a significant financial corpus.

Some of the types of mutual funds are-

Equity Mutual Funds

Equity mutual funds are great for building a corpus by staying invested for a longer term. These funds invest in equities. While investing directly in equities can be difficult, equity mutual funds are a great alternative.

Debt Mutual Funds

Debt mutual funds invest in fixed income instruments like government securities, corporate bonds, etc. They are less risky compared to equity mutual funds. If a person wants to earn stable returns, then he/she should consider investing in debt mutual funds.


Stocks are one of the best options for earning significant returns. By investing in stocks, a person can build a significant financial corpus. However, the risk associated with them is very high.

Gold ETFs

Gold ETFs are also called paper gold. Each unit of a gold ETF represents 1g of gold. Furthermore, it is a better alternative to holding gold in physical form because storing it in the house can be risky and also the cost of keeping it in a bank locker can be very high.

Child Insurance Plans

Child insurance plans provide a sum assured to the child in case the policyholder passes away during the tenure of the policy. As the kid’s future can be secured in case of an unfortunate event, many parents opt for this plan.

Furthermore, apart from providing the sum assured, there are plans that offer the waiver of premium add-on. In this add-on, if the policyholder dies during the term of the policy, then the insurer will continue to pay the remaining premiums.

Apart from ULIPs, there are other investment options that can help parents secure their child’s future. Understand your risk appetite, expected returns, and future requirements before making investments.

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