Best Mutual Funds to invest for your child’s education. Take the route of SIP to build an adequate corpus to fund your child’s future education.
From time immemorial, parents have been considering funding for their child’s higher education as one of the important financial goals of their life. There is nothing new in it. But in the current scenario, this aspect has become the most crucial part for every parent who has a growing child. Primarily, many parents only contemplate inflation based on the Consumer Price Index(CPI) or Whole Sale Price Index(WPI). That is a rise in the cost of living in compliance with food prices only. But my question is -What about education inflation? This is certainly not in line with food inflation. So, I have figured out the best mutual funds to invest in your child’s education.
Mutual Funds to invest for your child’s education
SIP is the best route to build a sizable corpus over the period of 10-15 years. Since SIP helps in making the cost of investments minimum along with rupee cost averaging and market ups & downs, there is currently no other alternatives other than this. Disciplined investment in SIPs can help parents to fund their child’s education. You need to make an adequate investment plan to make that dream a reality.
How much you need to invest for education funding
Since the cost of education is rising day by day and is at sky-high currently which is becoming nightmares for parents. Even you have to pay ₹50000 to ₹200000 for nursery education of a toddler. In that line, thinking of higher education is beyond their imagination. Here come best mutual funds to fund your child’s education very handy. Make an estimate of the cost of a particular degree or course. Don’t take a random amount. Find out how much corpus you require after 15 to 20 years considering the education inflation rate of 10% approximately. Now, let us take an example. Currently, you need ₹15 Lakh for a Medical, Engineering or an MBA course. Now, what will be this amount after 20 years if the inflation rate varies between 5 to 10%.
So, you can see from the above chart that for inflation rate variation from 5% to 10% the corpus amount changes from ₹3,979,946.56 to ₹10,091,249.92, which is really very noteworthy.
How much you need to invest monthly in SIP to achieve the above corpus
Assume you invest ₹5000 to ₹10000 monthly in SIP at 12% annual return, let’s just check how much corpus you can accumulate over a period of 20 years.
Thus, from the above chart, you can see that a sizable corpus in 20 years is possible to achieve if you start early and keep on investing whatever may be the market condition. Remember that only a continuous steep rise in the market condition is not desirable for any investor at all. The volatile market situation can provide a superlative return in the long run due to ups and downs in market condition. Though there might have some risk elements but you can beat this risk for staying invested for a long period of time say 10 to 15 years.
Best Mutual Funds to invest for your child’s education
There are different equity as well as debt oriented Mutual Funds for child’s education. Though one can consider different diversified and balanced fund for funding child’s education as the tenure of investment is very long.
You need to start your Mutual Funds investments at the earliest to make your child’s dream comes true.Since all fixed interest bearing instruments’s returns are shrinking day by day Mutual Fund for child’s education funding is the one and only best option.
Disclaimer: ArthikDisha is neither directly nor indirectly associated with the aforementioned plans and the AMCs. ArthikDisha advises investors to take prudent decision before investing. No one can held ArthikDisha responsible for any investment made in above plans.