Higher education has become one of the largest financial goals for Indian families. Whether your child dreams of becoming an engineer, doctor, lawyer, management professional or studying overseas, planning early is the key to success.
Through disciplined SIP investments and goal-based planning, you can gradually build the required education corpus while allowing the power of compounding to work in your favour.
Higher education costs have increased dramatically over the last decade and continue to rise faster than normal inflation. Planning early can significantly reduce the monthly investment required.
| Course / Destination | Estimated Current Cost |
|---|---|
| Private Engineering College (India) | ₹20 – ₹40 Lakhs |
| Top Private Engineering Colleges | ₹40 – ₹60 Lakhs |
| Private Medical College (MBBS) | ₹80 Lakhs – ₹2.5 Crore |
| Private Dental College | ₹20 – ₹60 Lakhs |
| MBA (Top Private Institutes) | ₹20 – ₹35 Lakhs |
| Law (Private Universities) | ₹15 – ₹30 Lakhs |
| USA (Engineering / MBA / MS) | ₹1.5 – ₹3.5 Crore |
| United Kingdom | ₹80 Lakhs – ₹2 Crore |
| Canada | ₹70 Lakhs – ₹1.5 Crore |
| Australia | ₹80 Lakhs – ₹2 Crore |
| Singapore | ₹60 Lakhs – ₹1.2 Crore |
* The above figures are indicative estimates only. Actual costs vary by institution, course, accommodation, exchange rates and future fee revisions.
Education inflation has historically been around 8–10% annually, which is considerably higher than normal inflation. Delaying your investments by even a few years can substantially increase the amount you need to save.
| Current Cost | Years Remaining | Future Cost (8% Annual Inflation) |
|---|---|---|
| ₹25 Lakhs | 10 Years | ₹54 Lakhs |
| ₹25 Lakhs | 15 Years | ₹79 Lakhs |
| ₹50 Lakhs | 10 Years | ₹1.08 Crore |
| ₹50 Lakhs | 15 Years | ₹1.59 Crore |
| ₹1 Crore | 10 Years | ₹2.16 Crore |
| ₹1 Crore | 15 Years | ₹3.17 Crore |
Imagine your child is only three years old today. If the higher education you want to provide costs approximately ₹1 Crore today, by the time your child turns 18, the same education could cost more than ₹3 Crore assuming education inflation of around 8% per year.
The good news is that you don't need ₹3 Crore today. By investing regularly through monthly SIPs in suitable mutual funds, you can gradually build the required education corpus over the next 15 years while benefiting from the power of compounding.
Every family is different. We build a customised investment plan based on your child's age, your financial goals and the number of years remaining before higher education begins.
Estimate the future cost of engineering, medical, management or overseas education after considering education inflation.
Determine the monthly SIP required to build the desired education corpus.
Choose suitable equity, hybrid and debt mutual funds based on the investment horizon.
Increase your SIP annually as your income grows to comfortably achieve your education goal.
Review investment performance and make changes whenever required.
Gradually shift investments towards debt funds as college admission approaches.
Monitor progress every year and ensure your education corpus remains on track.
Allow your child to choose the best college without worrying about finances.
As your child grows older, the investment strategy should gradually become more conservative to protect the accumulated corpus.
| Child's Age | Suggested Asset Allocation | Objective |
|---|---|---|
| 0 – 5 Years | 90% Equity / 10% Debt | Maximum Long-Term Growth |
| 6 – 10 Years | 80% Equity / 20% Debt | Continue Wealth Creation |
| 11 – 15 Years | 60% Equity / 40% Debt | Reduce Portfolio Volatility |
| Last 3 Years | 20% Equity / 80% Debt | Protect Education Corpus |
Every year of delay significantly increases the SIP required.
Many parents underestimate how quickly education costs increase.
Keeping long-term education savings only in Fixed Deposits may not beat inflation.
Continuing with a high equity allocation just before college admission can expose the corpus to market volatility.
The best time to begin was yesterday. The second best time is today. Let's estimate your child's future education cost, calculate the required SIP and build an investment plan designed to achieve that goal.
Plan My Child's Education