StP - Investors can systematically transfer a fixed amount from one scheme to another at regular intervals through the systematic transfer plan (STP). For example, you can transfer a pre-defined amount on a specified date from a debt investment into an equity scheme; this will not only generate returns on the debt investment but also negate the risk of one-time investment in equity. On the other hand, investors can lock gains from equity funds by transferring the same to short-term debt funds where the returns are less volatile. This is typically done when goal amount is achieved before time or when the goal is near - it reduces the effect of any short term volatility in the equity market on the investorâ€™s portfolio.
SWP - To meet the need for regular child-related expenses, such as education fees, investors can also look at systematic withdrawal plans (SWP) which allow redeeming a specified sum at a pre-determined date by providing instructions to the fund house.
To accumulate wealth to secure childrenâ€™s future and also protect them against uncertainties, parents should not only save regularly but also start investing early.