Child Education Calculator
Calculate the future inflated cost of domestic and international higher degrees, and determine the exact monthly SIP needed to fund your child's aspirations.
Why Education Inflation in India Outpaces CPI & How to Counter It
While regular headline consumer inflation in India hovers around 5%–6%, higher education inflation consistently clocks 8% to 11% annually. An engineering, medical, or MBA degree that costs ₹20 Lakhs today will easily cost ₹60 Lakhs to ₹80 Lakhs by the time a toddler finishes high school.
Why Sukanya Samriddhi & Traditional LIC Endowment Policies Fall Short
Traditional child insurance endowment schemes typically yield only 5%–6% returns, failing to match double-digit college inflation. In contrast, a disciplined 15-year equity mutual fund SIP delivering historical 12%–14% CAGR creates over 3x more wealth, ensuring you never have to depend on exorbitant 11% student loans or pledge real estate.
Frequently Asked Questions
Clear answers to common questions on formulas, taxation, and investing strategy.
Q1. Can I open a mutual fund folio in my minor child's name?
Yes! Indian mutual funds allow investments in the name of a minor child, with the parent or legal guardian operating the folio. Once the child turns 18, the folio seamlessly transitions to the child's independent PAN.
Q2. Should I invest in dedicated 'Children Gift Funds' or standard diversified funds?
While solution-oriented Children Funds exist, top-tier diversified Flexi Cap, Large & Mid Cap, and Multi Cap funds usually offer lower expense ratios, greater fund manager agility, and zero lock-in restrictions.
Q3. When should I transition the child education fund to safe debt funds?
Begin de-risking when your child enters Class 10 or 11 (age 15–16). Stagger your accumulated equity gains into safe Liquid or Short-Duration Debt Funds using an STP to lock in capital before college admissions.
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Turn Calculations into Real Financial Freedom
Calculators provide mathematical estimates, but consistent wealth creation requires choosing the right high-performing diversified schemes, tracking annual alpha, and disciplined rebalancing.