Child Education

Plan

Determine your Child’s interest. Engineering, MBBS etc
Calculate the current Cost of the course
Determine Number of years required for creating the funds
Determine the SIP required to create the fund

Example

Ravi and Anita have a 6 year old son aditya who wants to become engineer
They found out that cost of engineering in 2023 is 5 Lakhs
Year Left for aditya to start engineering is 12
Adjusting Inflation (10 %) Cost of Engineering in 2035 will be RS 15.7 Lakhs
They seek help of mutual fund advisor (MFA)
He advices them to create an SIP of Rs 5000 for 12 Years
Ravi and Anita do not have savings of Rs 5000 Per month
MFA advices to start an SIP of Rs 3370 and increase by 10% every year.
Ravi and Anita agree and start
Aditya’s education is now secured

Action