With Christmas fast approaching, every year we are all tasked with the responsibility of what gift to give our loved ones, and in particular, our children. While we generally gift toys or clothing, why not be a little innovative this year by giving a financial gift, one which can add long term value to your child’s life and teach them the value of money from an early age.
If you want to give something special to your child, gifting units in a Mutual Fund can enhance their future financial well-being. Investments in mutual funds provide investors with access to various asset classes with a low initial minimum investing requirement. Mutual Funds are simple to invest in and require no experience in investing, as these funds are managed by professionals.
Depending on your risk tolerance and the financial goal you set for your child, such as saving for higher education, this will determine the type of Mutual Fund you invest in.
In addition to reducing the toy clutter around the house, investing in Mutual Funds for your children during this holiday season has many other benefits.
Parents can make the initial contribution to the mutual fund and subsequently, direct any monetary gifts received from grandparents and other relatives, on behalf of the child, into the fund. As the child is a minor, the mutual fund investment will be operated by the parent or legal guardian, until the child is of legal age.
As the child grows, they can also contribute from their own allowance to this fund, where they would start to understand and appreciate the meaning of saving and investing, whether it’s for a special gift or something bigger like their future education or a down payment on their first car.
So, this Christmas spread the joy of giving by investing in your child’s future. By purchasing units in a mutual fund for as little as a $100, will give the gift of financial wealth and wisdom to your child.
Article by the: Mutual Funds Association of Trinidad and Tobago
Mutual Fund Association of Trinidad and Tobago
UTC Financial Centre
No. 82 Independence Square ,Port of Spain, Trinidad
Telephone: (868) 625-8648
Fax: (868) 625-5627