Power of Starting Small: How Mutual Fund
SIPs Can Fund Your Child's Education

Being a parent, providing the best education possible for our children is one of the greatest aspirations. Let's face it, though: high-quality education is getting more and more costly. If you're not prepared financially, the price of higher education, whether in India or outside, can be unaffordable.

But you know what is the good news? You don’t need to start investing the entire required investment amount. You just need to start early and invest the amount that you can comfortably invest. That’s the power of starting small in mutual fund investments. You can achieve your big financial goals by starting small through Systematic Investment Plans (SIPs).

Why Financial Planning for Education Is Important?

For your child, education is an important life milestone, not merely a goal.  A quality education has the power to influence futures, create jobs, and open opportunities.  However, the cost of tuition, coaching, lodging, and other expenses might reach millions or even crores.

Financial Planning for Education ahead helps you avoid taking education loans, or at least you will need a lower amount of loan. You can be financially stress-free when the time comes. It will also provide you with the flexibility in selecting the best course /college. Planning also helps you in avoiding unnecessary withdrawals of investment which are meant for other purposes.

Let’s take an example:

Scenario no.1

You can start SIP of Rs. 17,000/- p.m. for 10 years.

Scenario no.2

If you cannot start the entire SIP amount from year 1, you can start with a lower amount.

Even if you can’t invest Rs. 17,000/- at one go, you can still achieve the goal by increasing your investments by 10% consistently.

Scenario no.3

Assume that you can only invest Rs. 10,000/- for the education goal of your child.

Let’s see whether you can accumulate the required amount.

This is the power of equity. You can start small and achieve your goal through the power of compounding.

Your income is going to increase over the period. So, utilize the same effectively. Don’t underestimate the smaller investments in Equity Markets.

You can achieve any financial goal with this strategy.

Let’s take another few examples:

The earlier you start you need smaller the amount and you can achieve your financial goal conveniently.

You can also watch our video - From ₹20,000 SIP to ₹2.04 Crore! | The Advanced SIP Secret to Increase Returns