The cost of higher education in India and abroad is rising sharply every year. Parents who want to give their children the best opportunities need to start planning early. By making smart investments, it is possible to save ₹1 crore for your child's education without feeling financially stretched. The key lies in choosing the right mix of disciplined investments and protective plans.
How to Save ₹1 Crore for Your Child's Education (in 10 Years’ Time)
Here are some practical options to consider when wondering how to save ₹1 crore for your child’s education with proper planning:
Step 1. Equity Mutual Funds (SIP Route)
Mutual funds (through SIPs) can help you build wealth steadily. Equities tend to be volatile in the short term. But over a decade, they can help accumulate a large corpus.
- Monthly Investment: ₹25,000
- Tenure: 10 years
- Estimated Annual Return: ~12%
- Corpus at the End: ~₹56 lakh (approx.)
Step 2. ULIP for Child (Unit Linked Insurance Plan)
Opting for a ULIP for your child allows you to enjoy the combined benefit of insurance and investment. Along with market-linked returns, a ULIP provides life cover, ensuring your child’s education fund remains secure even in your absence. Those looking for the dual benefit of savings and protection in one product may find a ULIP the best investment plan for child education.
- Monthly Investment: ₹15,000
- Tenure: 10 years
- Estimated Annual Return: ~10%
- Corpus at the End: ₹31 lakh (approx.)
Step 3. Balanced Funds
A balanced child investment plan mixes equity and debt for moderate growth with lower risk. Parents with moderate risk tolerance, who are wondering how to save ₹1 crore for their child’s education, can add balanced funds to their portfolio.
- Monthly Investment: ₹8,000
- Tenure: 10 years
- Estimated Annual Return: ~9%
- Corpus at the End: ~₹15 lakhs (approx.)
Step 4. Fixed Income Option (PPF + Debt Funds)
Adding low-risk options, such as Public Provident Fund (PPF), combined with debt funds, can ensure stability and liquidity while reducing overall portfolio risk.
- Monthly Investment: ₹3,500
- Tenure: 10 years
- Estimated Annual Return: ~7%
- Corpus at the End: ~₹5 lakh (approx.)
The combined total corpus from the above options can add up to around ₹1.7 crore.
It is important to note that the above figures are estimates and potentialities. Returns may vary on the basis of several factors. It is important to consult a certified financial expert for personalised guidance.
Using a child plan calculator can help parents decide the ideal amount needed to fulfil their little one’s big goals. As per the calculator’s results, parents can opt for a mix of instruments, keeping in mind their financial requirements, tax liabilities, risk appetite, and more.
Why a Child Insurance Plan is Important alongside Investment
While pure investments build the corpus, a dedicated child insurance plan adds a crucial safety layer.
The features of child insurance plans include a life cover on the parent. In the unfortunate event of the parent’s demise during the policy term, the plan allows the future premiums to be waived off and the full promised maturity benefit to be paid to the child. This ensures that your child’s education fund is completely protected, no matter what.
If you want to save ₹1 crore for your child’s education, know that it is possible with discipline, the right products, and consistent savings. Starting early, choosing a suitable instrument like mutual funds or a ULIP, and securing the goal with a child insurance plan are crucial steps in this journey.
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