Planning for Your Child's Education
Education costs in India are rising at 10-12% annually — much faster than general inflation. Starting early and investing wisely is crucial.
Current Education Costs
Engineering (IIT): ₹10-12 lakh for 4 years. Medical (private): ₹50L-1 crore. MBA (top tier): ₹20-25 lakh. Abroad (US/UK): ₹40-80 lakh. At 10% education inflation, these costs will roughly triple in 12 years.
How Much to Invest
Target amount = Current cost × (1 + inflation)^years. For ₹20L needed in 15 years at 10% inflation: target = ₹83.5 lakh. Monthly SIP needed at 12% returns: ₹17,700/month. Starting early dramatically reduces the monthly requirement.
Best Investment Options
Equity mutual funds via SIP (for 10+ year goals): Best growth potential. Child-specific funds: Sukanya Samriddhi (for girls, 8.2% tax-free). PPF: Guaranteed 7.1% for 15 years. Avoid: Insurance-linked education plans — expensive and low returns.