SIP for Child Education
Child education SIP planning involves estimating the future cost of your child's education (accounting for education inflation of 10-12% annually), and starting...
SIP for Child Education
Child education SIP planning involves estimating the future cost of your child's education (accounting for education inflation of 10-12% annually), and starting a dedicated SIP to build the required corpus by the time your child needs it.
Education costs in India are rising at 10-12% per year — almost double the general inflation rate. An engineering degree costing ₹10 Lakhs today will cost ₹67 Lakhs in 20 years. An MBA costing ₹25 Lakhs today will cost ₹1.68 Crore in 20 years. Without a dedicated SIP for education, most parents will face a severe funding gap.
Costs rise 10-12% annually — double the general inflation rate
Starting at birth gives 18 years of compounding runway
Keep graduation and post-graduation SIPs independent
Move from equity to debt 2-3 years before the goal date
Priyanka's Education Fund
Priyanka has a 2-year-old daughter and wants to ensure she can afford top-quality engineering and MBA education without taking loans. Here is her education funding roadmap.
| Education Milestone | Current Cost | Future Cost (10% inflation) | SIP Needed (12% return) | Timeline |
|---|---|---|---|---|
| School (Class 11-12) | ₹3L | ₹10.4L (14 yrs) | ₹3,200/mo | 14 years |
| Engineering (4 years) | ₹15L | ₹69L (16 yrs) | ₹12,800/mo | 16 years |
| MBA (2 years) | ₹25L | ₹1.68 Cr (20 yrs) | ₹16,800/mo | 20 years |
| Study Abroad Option | ₹40L | ₹2.69 Cr (20 yrs) | ₹26,900/mo | 20 years |
| Total (Domestic Path) | ₹43L | ₹2.47 Cr | ₹32,800/mo | — |
What Makes This Important
Priyanka's Education SIP Calculation
Frequently Asked Questions
Great! Your SIP corpus can then be redirected to their post-graduation, startup capital, or wedding fund. Having excess is always better than having a shortfall.
🧠 Quick Quiz
1 questions to check your understanding