Child Education Planning

Securing Your Child's Dreams

The Education Cost Explosion

Staggering Statistics:

  • Education inflation in India: 15-20% annually
  • Cost of engineering degree today: ₹8-15 lakhs
  • Cost of medical degree today: ₹50-80 lakhs
  • MBA from top Indian institutions: ₹20-25 lakhs
  • Study abroad (undergraduate): ₹50-75 lakhs
  • Study abroad (postgraduate): ₹75-1.5 crores

Future Cost Projection (at 15% annual inflation):

  • Today's ₹10 lakh engineering degree will cost ₹40 lakhs in 10 years
  • Today's ₹25 lakh MBA will cost ₹1 crore in 10 years
  • Study abroad costs will triple every 7-8 years

Why Regular Savings Won't Be Enough

The Math Reality:

  • If your child's education will cost ₹50 lakhs in 15 years
  • You need to save ₹15,000 monthly in FDs (@ 6% returns)
  • But with mutual funds (@ 12% returns), you need only ₹8,500 monthly
  • The difference: ₹6,500 monthly or ₹11.7 lakhs over 15 years
Child Education Planning

Age 0-5 years: Maximum growth phase

  • 80% equity funds allocation
  • Long investment horizon allows for market volatility
  • Focus on wealth creation over capital protection

Age 6-12 years: Balanced approach

  • 60% equity, 40% debt allocation
  • Gradual shift towards stability
  • Regular monitoring and rebalancing

Age 13-18 years: Capital protection phase

  • 30% equity, 70% debt allocation
  • Systematic withdrawal plan preparation
  • Ensure money availability when needed

Goal-Based Allocation:

  • School education expenses: Conservative debt funds
  • Undergraduate expenses: Balanced hybrid funds
  • Postgraduate/professional courses: Aggressive equity funds
  • Study abroad fund: Separate high-growth portfolio

Tax-Efficient Structure:

  • Child-specific investment accounts
  • Tax-saving fund options (80C benefits)
  • Strategic withdrawal timing for tax optimization

My Education Promise:

  • Your child's career choice won't be limited by your financial situation
  • Guaranteed fund availability when admission time comes
  • Tax-efficient wealth creation that maximizes your savings

Flexibility Features:

  • Partial withdrawals for school fee payments
  • Step-up SIPs as your income grows
  • Course correction based on changing education costs
  • Multiple goal planning (coaching, entrance exams, living expenses)

Ready to Secure Your Family's Future?

Each of these services is designed to work together, creating a comprehensive financial safety net for your family. Let’s discuss which combination works best for your unique situation.