How an SIP can help build your child’s higher education corpus?

   2021-05-27       7        Finance
Rating :
As we all know, every child has the right to education. As parents, you always seek the best for your child...

Planning for your child’s higher education corpus may look quite daunting at the beginning to gather such a large amount of funds considering the increasing inflation rate. Still, it is achievable, provided you are planning early and start your investments with SIP i.e. systematic investment plan in a mutual fund. Plan your financial journey according to your child’s future needs to achieve your desired goals.

Hypothetical example is given below -

Ms. Varma is a single mother of a child who will graduate in 10 Years. Ms. Varma wants her son to pursue Law. Let’s assume today’s cost is Rs 3 lakh; and now we need to calculate an estimated cost for the same in next 10 years based on assumed at 6 % p.a. inflation rate. So the cost of the education in the next 10 years is Rs. 5.37 lakhs. This goal can easily be met through SIP provided a regular investment of Rs.2334  is made on a monthly basis assuming the rate of return is 12 % p.a. (Please note this is based on the and inflation calculator, however, it is not a guaranteed rate of returns)

Thus, it is most essential to plan and prepare to ensure your child gets access to the best of colleges. If you plan early, you may not have to compromise on your child’s future

Below is the step-by-step guide given to plan your SIP journey that helps build your child’s aspirations

Step 1: Decide Your Time Horizon

As stated in the earlier example, time is a crucial factor to determining your goals. Estimate the number of years left for your child’s graduation.  The longer the time horizon, the better it is for you to plan and invest.  Start early, invest wisely.

 

Step 2: Estimate the Cost of Education

You need to decide whether he or she wants a global exposure for education or a nearby well-renowned institute for their child. Also, which area of education do you want your child to graduate in is another important parameter to check.  Depending on such points, you should be able to figure out an estimated cost of education. While keeping this in mind, it is thus important to determine future cost of school/ college.

 

Step 3: Assess Your Existing Assets and Liabilities

 Make a list of all your assets and liabilities to help you assess your financial health and you can choose to plan better for your child‘s future goals. In a typical case, depending on your age, income and other significant criteria, you may need to prioritize your child’s education loan over the cost of a dream car or perhaps choose to delay your retirement planning depending on assessing your expenses and income (add a full stop)

 

Step 4: Estimate for the Amount to Be Saved

After calculating and assessing your assets and liabilities, the next step is to estimate our savings. Depending on that, you can choose your investment corpus. Decide how much you need to save now or whether a monthly contribution is required to achieve this goal on or before time. The easier way is to put aside some money towards each goal in a systematic manner. You can either opt for the Systematic Investment Plan in mutual funds or choose any other mode of investment options. An SIP is a preferred way to manage your investments. A disciplined and a planned approach will always make your journey easy.

 

Step 5: Choose your investment plan

Choose judiciously and invest wisely should always be your mantra. Asset allocation strategy is a boon to your investment journey. You may need to invest your hard-earned money in different investment avenues that depend on your risk appetite that aligns with your goals. Make sure you use the dive"

Author Signature :


Quantum Mutual Fund has over 14 years of experience into mutual funds and puts the needs of investors like you first. Invest in different types of schemes & start an SIP with Quantum Mutual Funds today!

100x100
QuantumMF Mutual Fund

Quantum Mutual Fund has over 14 years of experience into mutual funds and puts the needs of investors like you first. Invest in different types of schemes & start an SIP with Quantum Mutual Funds toda..


Random Articles

Pressure Washer Bella Vista AR
Pressure Washer Bella Vista AR..
   2020-09-09       33        Business
Buy Women Accessories Online at Best Prices
Buy Women Accessories Online at Best Prices..
   2020-06-14       30        Fashion
Global Biometric sensors Market is Estimated to Reach $1.8 Billion by 2024
Global Biometric sensors Market is Estimated ..
   2019-08-23       92        Business
Best and Low Fare Medivic Ambulance Service in Patna
Best and Low Fare Medivic Ambulance Service i..
   2020-12-23       29        Health
home inspection Reading PA
home inspection Reading PA..
   2019-08-10       133        Communication
Order Ebang Ebit E11++ Miners
Order Ebang Ebit E11++ Miners..
   2021-08-20       6        Electronics
Send Unique & Low Cost Mothers Day Gifts to Mysore Online
Send Unique & Low Cost Mothers Day Gifts to M..
   2020-12-21       30        Shopping
How to Remove Acrylic Nails At Home Different Methods
How to Remove Acrylic Nails At Home Different..
   2021-05-04       19        Fashion
Get Quality Electric Work from Experienced Electrician South Auckland
Get Quality Electric Work from Experienced El..
   2019-08-13       107        Business
ABOUT US

Some quick example text to build on the card title and make up the bulk of the card's content Some quick example text to build on the card title and make up the bulk of the card's content Some quick example text to build on the card title and make up the bulk of the card's content.

TOP AUTHORS
Thomas Shaw
thomasshaw9688@gmail.com
Total Posts : 13518
zero promosi
zero1601@gmail.com
Total Posts : 2091