Planning for Your Child's Higher Education
Higher education costs in India and abroad are rising at a rate significantly higher than general inflation. While regular inflation hangs around 6%, education inflation often touches 10% to 12% annually.
Why You Need a Dedicated Planner
If an MBA costs ₹25 Lakhs today, it might cost ₹80 Lakhs by the time your 5-year-old is ready for college. A dedicated planner help you:
- Factor in the higher cost of professional courses.
- Understand the exact SIP needed to reach that multi-crore goal.
- Adjust for the specific number of years remaining until the goal.
Strategic Allocation
For long-term goals (over 10 years), Equity Mutual Funds via SIP are usually the most effective route to beat high education inflation. As you get closer to the goal (within 2-3 years), consider moving the accumulated corpus to Debt or Liquid funds to protect it from market volatility.