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How to achieve child education goal of Rs 80 Lakhs

I want a corpus of 80 lakhs in next 15 years for my child's education. I am currently 39 years old and I save around 25 thousand per month from my salary. Will investing around 1 lakh per year in equity growth funds achieve this target in the next 15 years? Also are there any other avenues or methods for achieving this target other than MFs? Please suggest?

Apr 20, 2017 by Hitesh, Mumbai  |   Mutual Fund

Your current monthly SIP of Rs 25,000 can get you a corpus of Rs 1.32 Crores after 15 years assuming annual returns of 12.5%. Your total investment in 15 years is Rs 45 Lakhs. Check this tool https://www.advisorkhoj.com/tools-and-calculators/systematic-investment-plan-calculator

To reach the child education goal of Rs 80 Lakhs after 15 years, you may start another monthly SIP of Rs 15,000. Investment of Rs 1 Lakh per annum will not be sufficient to reach this goal. The above figure is based on assumed rate of annual 12.50%. Check this tool https://www.advisorkhoj.com/tools-and-calculators/become-a-crorepati

Equity Mutual Fund SIPs are the best way to reach your long term financial goals and therefore, you should not look for any other avenues or methods. SIP is a simple method which brings discipline in your investments and benefits from rupee cost averaging over long period of time.

Thanks for writing to Advisorkhoj :)

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