Long term goal
Children’s education planning.
A fixed date you cannot move, and a cost that rises faster than most prices. The plan matters less for the fund it picks than for how early the money starts and when it steps back from equity.
Who this is for
If your child’s college is five to seventeen years away.
Fees for engineering, medicine, management and study abroad have risen well ahead of general inflation, and the admission year will not wait for a market recovery. A child born this year starts college around 2044.
The fix is to price the course in the year it will be paid for, fund it monthly while the horizon is long, and start moving the money to safety three to four years before the first fee is due.
“The admission letter comes with a date. The plan should come with one too.”
The cost of starting later
A ₹20 lakh course today, funded for age 18.
The same course, priced at 8% education inflation, funded from different ages. Starting later shortens both the runway and the equity share, so the monthly amount climbs steeply.
Monthly SIP for a ₹20 lakh course today
Start early, pay less each month
- Child is 1₹11,100/mo
- Child is 5₹14,500/mo
- Child is 10₹25,100/mo
- Child is 13₹39,700/mo
3.6×more each month if you start when your child is 13 instead of 1
| Child’s age now | Years to college | Course cost then | Assumed return | Monthly SIP needed |
|---|---|---|---|---|
| 1 | 17 | ₹74.0 lakh | 12% | ₹11,100 |
| 5 | 13 | ₹54.4 lakh | 12% | ₹14,500 |
| 10 | 8 | ₹37.0 lakh | 10% | ₹25,100 |
| 13 | 5 | ₹29.4 lakh | 8% | ₹39,700 |
Illustrative projections. Course cost inflated at an assumed 8% a year; the assumed return steps down as the horizon shortens because the portfolio holds less equity. Monthly SIP, compounded monthly. Actual returns vary and may be negative in any period. Figures rounded. Not a guarantee, and not a recommendation of any specific scheme.
How we work
Four steps, then a review every year.
- 1
Price the course in its own year
Pick the likely path — India or abroad, professional or general — take today’s fees plus living costs, and inflate them to the admission year.
- 2
Count what is already set aside
Sukanya Samriddhi, PPF, existing funds, and gold or deposits earmarked for the child. We fund only the gap.
- 3
Invest monthly, then glide down
Equity-oriented funds while the goal is far away. From roughly four years out, a written schedule moves the corpus toward debt a slice at a time.
- 4
Review every year
Step the SIP up with income, check the estimate against real fees, and adjust the target if your child’s plans change.
Questions we get
Before you start.
Should I use Sukanya Samriddhi or mutual funds?
What if my child wants to study abroad?
What if the money is ready early, or the course costs less?
Is an insurer’s child plan better?
Other goals
Planning for more than one thing?
Retirement
Your longest goal. Most people start ten years late.
Plan this goal Long termChild’s marriage
A long horizon with a flexible date.
Plan this goal Medium termDream home
Usually three to seven years away.
Plan this goal Medium termTax saving
ELSS chosen on merit, not on the March deadline.
Plan this goal Short termEmergency fund
Six months of expenses, ready the same day.
Plan this goal Short termYearly expenses
Fees, premiums and festivals that come every year.
Plan this goal Short termDream vacation
A short horizon, so keep it safe.
Plan this goal Medium termSelf development
Courses or a career change, planned on purpose.
Plan this goalPlan your child’s education with us.
A free 30-minute call. We look at what you already have and work out what the goal really needs.
We never hold your money. Payments go straight to the fund house.
Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Projections are illustrations at an assumed rate, not guaranteed returns.