In Indian couple of top priorities for parents are Children’s education and Children’s marriage. Usually, there is good amount of time before the child would need money for these and Parents should look at SIP in equity funds for building a good Corpus.
Steps for putting a SIP:
1) Select couple of good funds from a good fund house with a track record of several years.
2) Have a good idea about when your child will go to the college and when he or she would get married. Basically know how many years you got before your child will need money for college and his / her marriage.
3) Select the application form — ECS mandate for fund transfer from your bank to selected mutual fund and the date on which the transfer will happen.
4) Most importantly >>>> DO NOT Touch these funds under any circumstances
5) Review Fund performance regularly and if required, Re-balance the portfolio.
If confused consider consulting us or any good financial advisor.
Please avoid a distributor or an insurance agent. Ask for his qualifications. he should be a CA, CFP or CFA at a minimum. See this article - Selecting your Tax Preparer