SIP for Child Education

What is SIP for Child Education?

SIP for child education is a smart way to save for your child’s future. It allows you to invest small, fixed amounts regularly in mutual funds. Over time, this helps you build a good amount of money for higher education. SIPs offer benefits like disciplined savings, compounding, and rupee cost averaging. You can choose funds based on your risk level and duration. Starting early ensures you have enough funds when needed.

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Monthly Investment ₹22.4 L

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Top Funds with High Returns (Past 7 Years)

16.4%

High Growth Fund

16.77%

Top 200 Fund

13.2%

Accelerator Mid-Cap Fund II

13.33%

Opportunities Fund

8.64%

Equity II Fund

11.62%

Accelerator Fund

12.67%

Grow Money Plus Fund

14.04%

Multiplier

10.82%

Equity Top 250 Fund

11.19%

Future Apex Fund

10.97%

Opportunities Fund

12.76%

Frontline Equity Fund

14.2%

Virtue II

9.39%

Pension Dynamic Equity Fund

10.45%

Equity Fund

9.07%

Blue-Chip Equity Fund

How SIP for Child Education Works?

Let us understand the working of the best SIP plan for child education from the following steps:

• Choose a Mutual Fund Scheme: Select an equity or hybrid mutual fund that suits your risk profile and long-term education goals.

• Decide the SIP Amount: Use an education cost calculator to estimate future expenses and set a monthly SIP amount accordingly.

• Set the Investment Tenure: Start early and aim for a tenure aligned with your child's education timeline to leverage compounding.

• Invest Regularly: Contribute a fixed amount each month and automate the process to ensure consistency and discipline.

• Track and Adjust: Review your SIP performance periodically and adjust the amount if needed based on changes in income or education costs.

• Redeem When Needed: Withdraw funds as per your child’s education milestones while being mindful of taxes on the redeemed amount.

SIP Calculator to Estimate Investment for Child Education

A SIP Calculator helps you estimate how much you need to invest monthly to meet your child's education expenses. This tool makes it easier to determine the amount of monthly contribution needed, allowing you to stay on track with your child's education goals in the future.

To estimate the monthly investment for your child's education, use the SIP calculator with the following details:

1. SIP Calculator for Child Education Fund:

   Select “I Know My Goal Amount” option. Enter your child education goal, investment duration, and expected return-

   • Child Education Fund Estimate: 20 lakhs

   • Investment Duration: 15 years

   • Expected Return: 15% annually.

2. SIP Calculator Results:

   The calculator will give the following results-

   • Monthly Investment Required: ₹3,250

   • Total Investment: ₹5,84,000

   • Amount Required: ₹20,00,000

   • Wealth Gained from SIP: ₹14,20,000

Key Points to Consider Before Investing in a SIP for Child Education

You should consider the following points before you start saving for your child’s education through a SIP plan:

• Start Early: Begin investing as soon as possible. The more time your money has, the better it grows.

• Estimate Future Costs: Find out how much education will cost in the future and plan your SIP based on that.

• Choose the Right Fund: Pick a fund that matches your risk level and how long you want to invest.

• Invest Regularly: Invest every month. This helps you stay disciplined and benefit from market fluctuations.

• Review Periodically: Keep checking the performance of your fund and make changes if needed.

• Consider Inflation: Education costs will rise over time, so plan for inflation in your SIP amount.

• Stay Disciplined: Don’t take money for other needs. Let it grow for your child’s education.

Conclusion

SIP is a reliable and efficient way to plan for your child’s education expenses. It helps you grow wealth steadily while managing risks through systematic investments. Starting early gives you a significant advantage, allowing the power of compounding to work in your favor.