Edelweiss MF's Radhika Gupta on benefits of starting SIP in your kid's name: 'You tend to be...'

Radhika Gupta believes that kids learn better about managing money by having their own investments.

Radhika Gupta recently took to X to share the benefits of starting an SIP (systematic investment plan) in children's names. The Edelweiss Mutual Funds MD and CEO, who has earlier revealed that she had done the same for her toddler, said the move helps both the kids and the parents.

"One of the things I've been talking about a lot is the benefit of starting an SIP in your child's name, ideally as soon as possible and for a specific goal," she said. "Not only does this help teach good money habits later, but when the folio belongs to the child, you tend to be more goal-oriented and long-term."

Gupta also shared that her company has made it easy for parents to open a new folio for minors on their website.

The Edelweiss boss has long been an advocate of starting young when it comes to investing. In 2023, Gupta revealed that she had begun to invest in equities for her son when he was just six months old. “He already has an SIP in large and midcap index funds,” Gupta told Mint in an interview. "The reason to own an index fund for my son is that he has an 18-year horizon, and over 18 years, I truly don’t know how funds or markets will evolve. A broad-based fund that gives exposure to Indian economic growth, is all we need. We can top it up later as time passes,” Gupta had said.

In 2022, she had also highlighted that the power of compounding is immense for children. "And the sooner you start the better… What better way to teach them about managing money than them having their own investments?” she said.