Since your main concern is your children’s future needs, it is better to go for a PPF investment (if you are a low-risk investor) or some good diversified mutual funds (if you are a moderate risk-taker). However, there are some children insurance plans in the market that provide a combination of insurance and investment. But returns on them are not encouraging as compared to other products. Some good diversified mutual funds are HDFC Top 200, IDFC Premier Equity Plan A, Reliance Growth and Birla SunLife Frontline Equity.