Investing For The Future of Your Child

Why do  you think it is a wise thought?  It is a wise decision as it safeguards you from the unforeseen events which may impact your child’s education and important milestones. A good investment plan can help provide financial security and opportunities. Here are some steps to consider when investing for your child’s future

1. Determine  the needs of your child at various life stages

There are different stages in a child’s life   where you need to invest a good amount of money for example their education, marriage etc. The calculation of the sum required at that time can be estimated for a particular course for example: the current fees or estimated current expenses on the marriage plus inflation impact for those gap years.

Check out the India’s largest P2P lending platform

2. Objective of Investments

Determine your objectives for investing, such as saving for education expenses, a plan for marriage expenses, or general long-term wealth accumulation.

3. Compounding magic

The earlier you begin investing, the more time your money has to grow. Compound interest can have a significant impact on your investment returns over the long term. You can start as early as when you plan for a child.

4. Risk tolerance waterfall

The risk tolerance level is different at different times in your professional life so it is required to access your risk tolerance wisely. Generally, longer investment horizons allow for more aggressive investment strategies, while shorter horizons may require a more conservative approach.

5. Diversification

An ideal ratio basis your risk tolerance to be decided to start with. For example: Your risk tolerance is the highest when you are in your middle age and have a long career left and the risk tolerance goes down with every elapsed year to your retirement.

Spread your investments across various asset classes (e.g., Conservative as FDs, Aggressive as Alternative asset classes like P2P lending, stocks, bonds etc) to reduce risk. Diversification helps mitigate the impact of any single investment’s poor performance.

 6. Create a financial plan

Develop a comprehensive financial plan that considers your child’s future needs, your current financial situation, and your investment strategy.

7. Impact of Taxation

As we don’t know future tax implications on various investment options, it is wise to choose an investment mix of tax free and taxable repayments of Investments.

8. Consistent contribution

As the income levels  keep changing, the regular investments will help build a big corpus. It also averages out the returns of negative and positive behaviour. Automating these contributions can help ensure you stay on track and take advantage of currency revaluing impact.

9. Take help from a financial advisor

It is suggested that a professional financial advisor who specializes in family investments or wealth management, can help you better in case you don’t have expertise in this area. They can help you develop a personalized investment strategy based on your specific needs and circumstances.

10. Review and keep Updated

The value of the portfolio,  whether growing at  the expected growth rate or otherwise, should  be reviewed at a regular interval and  the changes should be made accordingly. As your goals can also be amended based on the development of the child, revision in investment strategy  becomes a need.


This blog only guides on a concept level, as investing involves risks, it is suggested that professional advice before investing would be solicited.

Has over 20 years of experience in lending space and is specialized in the Fintech environment. Currently is the Chief Operating Officer at LenDenClub. Holds expertise in the areas of Tech enabled product development, Operational Controls, Credit & Risk, Policy drafting, Internal Audit, Cost optimization, Business process reengineering in the Banking and Financial sectors.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499