EDUCATION PLANNING
Build a dedicated corpus for your children's higher education. With rising education costs, early planning and systematic investing can help you fund quality education without compromise.
Education costs in India are rising at 10-12% annually—double the general inflation rate. What costs ₹10 lakhs today will cost ₹25 lakhs in 10 years and ₹64 lakhs in 20 years. Without planning, you'll either take expensive education loans, compromise on college quality, or deplete your retirement savings.
Education planning is about starting early, investing systematically, and building a dedicated corpus so your child can pursue their dreams—IIT, IIM, MBBS, engineering abroad, or any course—without you worrying about finances. Every parent's dream is to give their children the best education. We help make that dream a reality.
Engineering (IIT/NIT): ₹10-15 lakhs for 4 years today → ₹40-60 lakhs in 15 years
Medical (MBBS): ₹50 lakhs-1 crore today → ₹2-4 crores in 15 years (private colleges)
MBA (IIM/Top B-Schools): ₹20-25 lakhs today → ₹80 lakhs-1 crore in 20 years
Study Abroad (US/UK): ₹50 lakhs-1 crore today → ₹2-4 crores in 15 years
Starting early: ₹5,000/month for 15 years @ 12% = ₹25 lakhs. Wait 5 years? Need ₹12,000/month for same amount.
Calculate how much your child's education will cost based on current fees, inflation, and years remaining.
Goal-based SIPs in equity mutual funds to accumulate the required corpus through systematic investing.
Dedicated education funds and insurance-linked plans with life cover for parents ensuring goal completion.
Regular progress reviews to ensure you're on track. Adjust investments as child grows and goals evolve.
Six powerful reasons to begin investing for education today
Starting when your child is born vs age 10 makes a massive difference. ₹5,000/month for 18 years @ 12% = ₹40 lakhs. Start at age 10? Need ₹15,000/month for same amount. Early start means lower monthly burden and higher final corpus.
Education loans charge 10-14% interest. A ₹30 lakh loan means ₹45 lakhs repayment over 10 years—burdening your child's early career. With proper planning, you fund education from your corpus, debt-free. Your child starts career with zero loans.
Education costs rise 10-12% annually—traditional savings accounts giving 3-4% can't keep pace. You need equity mutual funds averaging 12-15% over long term. Starting early gives time to ride market volatility and accumulate substantial corpus beating inflation.
With adequate corpus, your child chooses college based on quality, not affordability. Want to study abroad? Pursue expensive MBBS? Afford coaching for competitive exams? Financial preparedness means no compromise on dreams. Merit and passion drive choices, not money.
Many parents raid retirement savings or EPF for children's education—destroying their own future. Separate education corpus ensures you don't compromise retirement security. Both goals achieved independently without conflict or sacrifice.
Investments in child education plans and ELSS mutual funds qualify for tax deduction under Section 80C (up to ₹1.5 lakhs). Build corpus while saving taxes. Long-term capital gains on equity funds also tax-free up to ₹1.25 lakhs annually.
Avoid these costly errors that burden families
"I'll start when my child is in 10th standard" is a disaster. By then you have only 2-3 years—insufficient time for compounding to work. You'll face massive monthly investment burden or take loans. Start at birth or as early as possible.
Child insurance plans give 5-6% returns—barely beating inflation. After charges and premiums, corpus falls short. Use term insurance for protection, equity mutual funds for corpus building. Separate insurance and investment for better results.
Thinking "₹10 lakhs will be enough" without factoring 10-12% education inflation. Also ignoring living expenses, books, laptops, coaching. We calculate total cost realistically—tuition + accommodation + miscellaneous + buffer.
FDs give 6-7% returns—insufficient to beat 10-12% education inflation. Your purchasing power actually decreases. Need equity exposure (through mutual funds) for 10+ year goals. Shift to debt only 2-3 years before college admission.
Pooling investments for all children creates confusion. Children have different timelines—one needs money in 10 years, another in 15. Create separate SIPs for each child with distinct goals, amounts, and timelines for clarity.
Withdrawing from child's education fund for emergencies, vacations, or other expenses. Every withdrawal compounds negatively—reducing final corpus significantly. Maintain separate emergency fund; never touch goal-specific investments.
Our education planning framework calculates exact corpus needed, builds it systematically, and ensures funds are available when your child needs them.
Start Your Child's Education PlanFrom goal definition to corpus building and monitoring
Identify education goals: Engineering, medical, MBA, study abroad? When? Child's current age determines timeline. 2-year-old has 16 years for undergraduate, 20+ years for postgraduate. Longer timeline = lower monthly investment.
Calculate future cost: Current tuition fee + living expenses + coaching + miscellaneous, inflated at 10-12% annually. Example: Engineering costs ₹15 lakhs today, will cost ₹60 lakhs in 15 years. We calculate precise corpus needed.
Based on required corpus, timeline, and expected returns (12% for equity funds), calculate monthly SIP needed. For ₹50 lakhs in 15 years, invest ₹8,500/month. Factor in existing investments and planned increments.
For 10+ years: 80-100% equity mutual funds (flexi-cap, large-cap, multi-cap). Last 3-5 years: gradually shift to debt funds to protect capital. We also evaluate child education insurance plans if you need life cover.
Start SIPs in selected funds, set up auto-debit from bank account. Entire process is paperless and completed within 3-5 days. You receive monthly statements tracking investments. Set it and forget it—automation ensures discipline.
We review progress annually: On track? Salary increased (increase SIP proportionately)? Child's interest changed (adjust goal)? Market performance? Rebalance equity-debt allocation as college admission approaches.
When it's time to use funds (college admission), we create tax-efficient withdrawal strategy. Redeem in tranches, use LTCG exemption limit (₹1.25 lakhs tax-free annually), minimize tax impact while ensuring liquidity for fee payment.
Indicative monthly SIPs needed for various education goals (@ 12% returns)
Target Corpus: ₹50 lakhs in 15 years
Child Age: 3 years | Timeline: 15 years
₹8,500
per month
Target Corpus: ₹1 crore in 15 years
Child Age: 3 years | Timeline: 15 years
₹17,000
per month
Target Corpus: ₹60 lakhs in 20 years
Child Age: 2 years | Timeline: 20 years
₹6,200
per month
Target Corpus: ₹80 lakhs in 18 years
Child Age: Newborn | Timeline: 18 years
₹7,500
per month
Note: These are indicative amounts assuming 12% annual returns. Actual requirements vary based on child's age, course choice, college preference, and location. We provide personalized calculations for your specific situation.
Get a free education cost assessment and personalized savings plan. Start building your child's education corpus today.
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