Education in India is no longer affordable — private school fees, coaching, undergrad, and foreign studies have seen double-digit inflation year-on-year.
🎓 A medical degree in India: ₹25–30 lakhs
💻 A foreign MBA: ₹60 lakhs to ₹1 crore
🎯 Solution? Start early and invest smartly.
Here’s your 2025 strategy to invest for your child’s education — no matter their age or your income.
Step 1: Define the Goal Clearly
What kind of education? (Engineering, Medicine, Foreign Degree?)
When will funds be needed? (5, 10, 15 years later?)
Estimated cost in future (Factor 8–12% annual inflation)
🎯 Example:
A ₹10 lakh course today will cost:
₹18–20L in 10 years (at 7% inflation)
₹30L+ in 15 years
Step 2: Choose the Right Investment Instruments
Best Investment Options for Child’s Education in 2025
| Investment Type | Ideal For | Returns (p.a.) | Tax Benefit |
|---|---|---|---|
| SIP in Mutual Funds | Long-term (10–15 yrs) | 10–15% | LTCG tax-efficient |
| Sukanya Samriddhi Yojana (girl child) | Safe, long-term | 8.2% (2025) | EEE (Tax-free) |
| PPF | Safe, 15-year lock-in | 7.1% | EEE (Tax-free) |
| Child ULIP | Insurance + Investment | 6–10% | Tax-free on maturity |
| Fixed Deposit | Short-term goal | 6.5–7% | Taxable |
| Recurring Deposit | Short-term, low risk | 6.0–6.5% | Taxable |
🧠 Mix high-return and low-risk options based on your risk profile.
Step 3: How Much to Save Monthly?
Use the Education Cost Formula:
Future Cost = Present Cost × (1 + Inflation Rate) ^ Years
🎓 Example:
Target: ₹30 lakhs in 15 years
SIP Needed: ₹5,500/month @ 12% return
📱 Use Vizzve’s Education Fund Calculator to find your exact monthly amount.
Real 2025 Portfolio Samples by Child’s Age
👶 If Child Is 1–5 Years Old:
70% SIP in Equity Mutual Funds
20% PPF or Sukanya (for girl)
10% Gold Bonds / Hybrid
👦 If Child Is 6–12 Years:
60% SIP in Equity/Hybrid
25% PPF/Sukanya
15% FD or Liquid Funds
👩🎓 If Child Is 13–17 Years:
40% Equity/Hybrid
30% FD/Short-term Debt Funds
30% Liquid for tuition or hostel costs
💡 Move gradually to safer instruments as the education year approaches.
Step 4: Create a Dedicated Education Fund
Avoid mixing child education funds with:
Emergency fund
Retirement corpus
Daily expenses
Open a separate investment account or mutual fund folio via Vizzve and label it “For Child’s Future”.
Step 5: Talk to Your Child
Involve older kids in basic money talks.
It builds responsibility and shows them the value of what you’re planning.
FAQs
1. How early should I start investing for my child?
The moment they’re born is best. Even ₹500/month for 18 years can become ₹5–7 lakhs.
2. What’s better – SIP or PPF?
Both are good. SIPs offer higher growth, while PPF is safer with tax-free returns. Combine both.
3. Is Sukanya Samriddhi a good option?
Yes, especially for girl children under 10. Offers high interest and tax-free maturity.
4. Can education loans replace investments?
Loans help in the short term but carry interest burden. Investments = peace of mind and control.
Conclusion: Invest Smart, Not Late
Your child’s dreams shouldn't be paused due to rising costs or late planning.
🧠 Start today. Start small. Grow consistently.
With Vizzve, you can:
Set education goals
Calculate SIPs and targets
Track growth, rebalance, and stay on course
Choose top funds suited for child’s education
Vizzve – Turning Dreams into Degrees.
Your child’s future deserves the smartest plan.
Published on : 26th July
Published by : SMITA
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