Child Education Planning
Education costs are rising at 10–12% per year. Start planning today to ensure your child's dreams are never limited by finances.
The Cost of Education is Rising Faster Than You Think
Education inflation in India runs at 10–12% annually. A professional degree that costs ₹20 lakh today will cost ₹52 lakh in 10 years and ₹1.35 crore in 20 years. Without a dedicated education fund, parents are forced to take high-interest loans or compromise on quality.
The solution is to start early, invest systematically, and let compounding do the heavy lifting. A small SIP started when your child is born can comfortably fund even the most expensive professional courses by the time they turn 18.
How to Plan for Your Child's Education
Estimate the Target Corpus
Identify the course your child may pursue (engineering, medicine, MBA, etc.) and estimate its current cost. Apply education inflation (10–12%) to project the future cost at the time of admission.
Determine the Investment Horizon
Calculate the number of years until your child needs the funds. The longer the horizon, the more aggressively you can invest in equity funds.
Choose the Right Investment Vehicle
For horizons of 10+ years, equity mutual funds (via SIP) offer the best inflation-beating returns. For 5–10 years, hybrid funds. For under 5 years, debt funds or fixed deposits.
Protect the Plan with Insurance
Ensure adequate term life insurance so the education fund is not disrupted in case of the parent's untimely demise. Child education plans (insurance-linked) can also be considered.
Education Corpus Calculator
Future Education Cost
₹62.77 L
in 12 years at 10% education inflation
Monthly SIP Required
₹18,088
for 12 years at 13% p.a.
*Projections are illustrative. Actual returns may vary.
Investment Options for Education Planning
SIP in Equity Mutual Funds
The most effective way to build a large education corpus over 10–18 years. Equity funds have historically delivered 12–15% CAGR, significantly outpacing education inflation.
Horizon
10–18 years
Risk
Moderate to High
Public Provident Fund (PPF)
Government-backed, tax-free returns at ~7.1% p.a. Safe but may not beat education inflation over the long term. Suitable as a debt component of the education portfolio.
Horizon
15 years (lock-in)
Risk
Low
Sukanya Samriddhi Yojana (SSY)
For girl children only. Government scheme offering ~8.2% p.a. tax-free returns. Matures when the girl turns 21 (partial withdrawal at 18 for education). Excellent for girl child education planning.
Horizon
Until age 21
Risk
Low
Child Insurance Plans (ULIPs)
Insurance-linked investment plans that waive future premiums on parent's death while the fund continues to grow. Provides both investment and protection in one product.
Horizon
10–20 years
Risk
Moderate
Projections are based on assumed rates of return and inflation. Actual returns may vary. Mutual fund investments are subject to market risks. Please read all scheme related documents carefully.
Start Your Child's Education Fund Today
The earlier you start, the smaller the SIP needed. Book a free consultation and let us build a goal-based education plan for your child.
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