Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • SBI Mutual Fund’s top 5 SIP plans – up to 20% CAGR in 10 years; Rs 10K investment turns into Rs 35 lakh – Money News
    • Sovereign wealth funds, including Singapore’s GIC, drive biggest deals in US$3.5 trillion M&A year
    • Buffalo Comptroller appealing judge’s ruling over her refusal to issue bonds
    • 3 Unstoppable Growth ETFs That Could Turn $10,000 Into More Than $12 million With Practically Zero Effort
    • The Housing Market Is Slowing Down But These REIT ETFs Are Running Hot. Thank AI.
    • New England police union claims to have found ‘significant’ misappropriation of funds
    • BSEC bars mutual fund investment in bank bonds.Will it deprive investors?
    • ‘Sip and Screen’ event at Orlando Health South Lake Hospital promotes Breast Cancer Awareness
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Mutual Funds»Should you invest in mutual funds to create corpus for your child’s higher education?
    Mutual Funds

    Should you invest in mutual funds to create corpus for your child’s higher education?

    June 14, 2025


    If you have a young son or a daughter, investing for their higher education is a no brainer. Some tend to invest in PPF, whereas some have a special love for fixed deposits (FDs). A few prefer to invest in the tax-saving instruments such as National Savings Certificates (NSC), Kisan Vikas Patra or Sakanya Samriddhi Yojana (SSY). 

    The more ambitious ones, however, may opt for mutual funds. But is this advisable to invest in mutual funds to create corpus for your child’s higher education? Well, it certainly is, advise experts as long as it is done with proper planning and under the right guidance. Let us find more on this. 

    “Parents are under huge pressure to accumulate a corpus for their kids’ education purposes. Education inflation should be considered at 8 to 10% every year. Equity Mutual funds can be good options, along with PPF and SSY (especially for girls), to achieve the required corpus for educational purposes,” says Preeti Zende, a Sebi-registered investment advisor and founder of Apna Dhan Financial Services.

    Also Read | Mutual funds seen favouring short-term Indian corporate debt after inflows hit 2-year high

    Mutual funds for higher education

    Should you invest in mutual funds for higher education?

    Higher education needs tend to arise when the child is 18 (for undergraduate degree) or 21 (for master’s degree). This means the time horizon is long enough to invest in mutual fund scheme. So, one can invest in mutual funds across categories to save for your child’s higher education.

    What is the ideal debt-equity ratio in mutual funds when you save for child’s higher education?

    One expert we spoke to recommends that the ideal debt-equity ratio is 30-70 in favour of equity when the time horizon is 7 years or longer. On the other hand, when time horizon is shorter than seven years, one may invest 50-50 in equity and debt.

    “When time horizon is long, investors should have a higher allocation to equity,” says Sridharan S., founder of Wealth Ladder Direct.

    “One can have a good blend of index funds, flexicap and midcap funds in the ratio of 40:40 and 20 or 50:35:15 as per your risk-taking ability,” adds Zende.

    Equity Mutual funds can be good options, along with PPF and SSY (especially for girls), to achieve the required corpus for educational purposes.

    Preeti Zende
    founder of Apna Dhan Financial Services

    When education loans is available, why should one invest in mutual funds for children’s education?

    One should invest in the children’s education because there should always be an option to fall back upon. Moreover, education loan tends to inculcate financial discipline among children. When they spend a huge sum on their education, they should be responsible enough to recover the cost.

    “It is recommended to save enough corpus for children’s education. As a parent, we should be prepared for the worst case scenario of economy wherein the child fails to get a high paying job right after the degree . But it should be the moral responsibility to the child to pay back the money,” adds Sridharan.

    Also Read | Investment word of the day: Exit load — Why is it important in mutual funds?

    What are the factors one should consider at the time of calculating total cost of education as the child grows up?

    It is important to factor in inflation for the number of years which are ahead of the financial goal. For instance, if the financial goal is 10 years away, and inflation grows at 5 percent per annum, then 5 percent for each year should be factored in before arriving at the total sum required. “It is vital that one considers inflation for the country you intend to go,” adds Sridharan.

    Apart from mutual funds, what other smart investment one can make?

    Apart from mutual funds, one can invest in the currency of the destination country so that spike in currency does not botch up your calculation. “One can consider investing in the currency of that country where you intend to go,” says Sridharan.

    For all personal finance updates, visit here



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    SBI Mutual Fund’s top 5 SIP plans – up to 20% CAGR in 10 years; Rs 10K investment turns into Rs 35 lakh – Money News

    October 22, 2025

    Freetrade looks to shake up the mutual funds market

    October 21, 2025

    3 Top-Ranked Small-Cap Blend Mutual Funds Worth Buying

    October 21, 2025
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    The Housing Market Is Slowing Down But These REIT ETFs Are Running Hot. Thank AI.

    October 21, 2025

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Mutual Funds

    SBI Mutual Fund’s top 5 SIP plans – up to 20% CAGR in 10 years; Rs 10K investment turns into Rs 35 lakh – Money News

    October 22, 2025

    SBI Mutual Fund, one of India’s largest fund houses, today operates over 125 schemes across…

    Sovereign wealth funds, including Singapore’s GIC, drive biggest deals in US$3.5 trillion M&A year

    October 21, 2025

    Buffalo Comptroller appealing judge’s ruling over her refusal to issue bonds

    October 21, 2025

    3 Unstoppable Growth ETFs That Could Turn $10,000 Into More Than $12 million With Practically Zero Effort

    October 21, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    ETFs to Bet on Dollar Weakness – August 22, 2024

    August 22, 2024

    US Bonds Slide for Third-Straight Day as Fed-Cut Bets Wane

    October 23, 2024

    Direxion’s QCMU And QCMD ETFs Facilitate Countervailing Trades On Tech’s Unusual Sleeper – NVIDIA (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO)

    October 17, 2025
    Our Picks

    SBI Mutual Fund’s top 5 SIP plans – up to 20% CAGR in 10 years; Rs 10K investment turns into Rs 35 lakh – Money News

    October 22, 2025

    Sovereign wealth funds, including Singapore’s GIC, drive biggest deals in US$3.5 trillion M&A year

    October 21, 2025

    Buffalo Comptroller appealing judge’s ruling over her refusal to issue bonds

    October 21, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.