Education costs in India inflate faster than general inflation. Here's a structured way to stay ahead of them.
A four-year engineering degree at a good private institution can cost ₹15–25 lakh today. At an education inflation rate of roughly 8–10% a year, a child who is three years old now may need ₹40–60 lakh by the time they turn eighteen. The number is large — but fifteen years of compounding is also a long runway.
Start with the number, not the product
Estimate the future cost of the goal first: take today's cost, inflate it at 9% per year until the year you'll need the money, and work backwards to the monthly investment required. Our Goal Calculator does exactly this. Only after you know your required monthly SIP should you choose where to invest it.
Match risk to the time horizon
- More than 10 years to go: equity-oriented funds can carry most of the load — time absorbs volatility.
- 5–10 years to go: a blend of equity and hybrid funds balances growth with stability.
- Under 5 years: shift steadily toward debt and conservative options. The goal is now protection, not growth.
This gradual shift from growth to safety as the goal approaches is called a glide path, and it's what separates a plan from a hope. Markets will do what they do; your allocation should reflect how soon you'll need the money, not how you feel about the market this year.
One last suggestion: review the goal amount every two years. Education costs, currency rates and your child's plans will all evolve — your plan should evolve with them.