-6. Set up a Fixed Deposit
While SIPs are more lucrative, they are subject to market risks. A fixed deposit might be a more traditional form of investment but will give you assured returns. The best way to go about is to have at least a couple of fixed deposits; pick the terms in such a way that the maturity of the FD coincides with an important milestone. For example, one could mature around the time that your child will complete school, another could mature around the time he completes graduation. Maybe a third that will mature in time for you to throw him a big wedding, or buy him a house or car.