I Want To Accumulate Rs 30 lakh For My Child's Education. How To Invest?
Question: I am 32 years old and have a 3-year old kid. I want to accumulate Rs 30 lakh for my child's future education. How should I invest?
Anil Rego, CEO of Right Horizons, a wealth advisory firm: The current age of daughter is three years. The higher education (graduation) need will commence post 16 years and hence there is gap of 14 years to accumulate corpus. This is a long-term goal and hence we can consider investing in equity mutual funds via SIP mode (investing monthly).
The amount required for education as on today is Rs.30 lakh.
The amount after considering inflation post 14 years would be Rs.82.5 lakh.
Hence the lump sum amount to be invested today to build this corpus considering 10 per cent returns would be Rs.21.74 lakh.
The amount required to be invested yearly would be Rs.2.95 lakh and monthly would be Rs.24,000. For Rs 30 lakh corpus, we need to increase the SIPs accordingly.
So we suggest to invest about Rs 25,000/ month in mutual funds via SIP.
We can consider investing in largecap fund like SBI Bluechip fund, ABSL Frontline Equity fund and multicap funds like Franklin India Prima Plus, SBI Magnum Multicap, Motilal Oswal Focused 35 etc.
Balanced fund like ICICI Pru Balanced fund also can be invested on a smaller portion to reduce the risk
Â
Disclaimer: Investors are advised to make their own assessment before acting on the information.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
