Showing posts from February 25, 2007

12 stocks to make your child's future bloom

The rising cost of education and other needs of children has made it difficult for parents to raise resources. But systematic and intelligent investment at the right time can reduce the burden later. What you need is an investment asset that grows faster than your kids, and gives you higher inflation-adjusted returns in the future. Equity, as an asset class, has the potential to give great returns, although it does have a high downside risk. However, if you invest intelligently and knowledgeably, the risk can be minimised. The Sensex has given a return of 19 per cent compounded annual growth rate (CAGR) since 1979, higher than any other financial investment instrument available to an average retail investor. What this means is that Rs 1 lakh (Rs 100,000) invested in the Sensex in 1979 is worth Rs 14 crore (Rs 140 million) today, despite the ups and downs in the equity market. In the last three years, Indian equity markets have returned over 32.6 per cent re…