i want to buy unit trust by paying Sh 5,000 monthly and get paid from year 13-19 when my son will be in school ( form 1 in 13th year)

please advise whether this is a good way to assure the education of my 1 year son

it will also come with death rider ( premiums are waived if i die)

The money can be invested in money markets,equities,balanced fund

please advise

Better days are ahead

I think it depends on your goals. Whereas shares will give you the best return over 13 yrs,better than that unit trust perhaps,we cannot predict the future. Maybe you can use the unit trust as a way to diversify the management of your investments,like a fall back plan so that since you are not a pro in these stocks issues you can have a pro managing some of your cash (in the unit trust) while you manage some of you own in the NSE. That way,as you learn to deal with NSE,you are not loosing out on opportunities. another important thing to consider is what if you die 3 years from now. At least with the waiver of premium,your child still gets to go to form 1 lakini if you rely on stocks alone,the growth of your investments and how you manage them dies with you. Dont just think of returns,try balance with risks also.

@ Fundaaah

wapi umepata hiyo product ya pure life cover at 12,000 per annum. How old in the person insured and whats the sum assured. nimetafuta cover kama hiyo for the last 3 years mpaka I gave up. And please dont tell me its a personal accident cover.

Rather than spending all your time reading about the future and trying to figure the nuances of what is it might hold,may be you should spend at least as much time getting to know Him better (David Jeremiah)

@ Fundaah

I already did. What they have are term life covers,as in you take a life cover for a defined period of time e.g 15 yrs and at the end of the defined term its mambo kwisha. Its a good cover if you only want life cover for the defined period. Lakini one small detail,if I recall correctly,they say that minimum premium must be 2000 (or is it 2500?) shs per month. ICEA have a slight improvement whereby at the end of the term (say 15yrs) they give you back the total premiums you have paid (bila any interest) but the catch is for the same sum assured,you pay slightly more with ICEA than with CFC.


By the way,I said diversify management of the investment,not diversify where the money in invested.

Rather than spending all your time reading about the future and trying to figure the nuances of what is it might hold,may be you should spend at least as much time getting to know Him better (David Jeremiah)

Hi...I have some experience in insurance and unit trust stuff,having worked at an insurance compan for some time.

Kindly contact me on 0733956356 then we could discuss the options available to you. With 5000 you should be able to secure a good investment. Furthermore,its kind of hectic dealing in shares..my advice is,leave it to the professionals. CIC and UAP are very good examples.

Nway let us talk en see. God bless.

Wangare

Everybody must be ready to work for their own stomach....not selfishness....but responsibility.Its unhealthy to wait for manna from heaven all the time and getting disappointed when it doesn't come to you!