In 2035, Medical college fees would be 80 Lakhs. Discover Exclusive Gift for your kids.

Saving money for kid’s education is biggest responsibility of parents. Parents look for investment option for their kids education and finally they select sukanya samriddhi scheme or policy in LIC or fixed deposit. The returns from these investment may not sufficient for your kids education. Higher education fees is increasing 10% every year. Medical college fees would become 80 lakhs in 2035. Are you investing in right instrument to get 80 Lakhs for your kids education.

Let us take sukanya samriddhi scheme, Invest monthly 5,000 rupees for 15 years from now. Your total investment would be 9 lakhs and you would get 26 lakhs at the end of 2041.

Start investing in equity oriented mutual funds for long term. Invest monthly 5,000 rupees for 20 years in Nifty index and Nifty next index funds. You would get around 75 lakhs in 2041.

Your kids education is long term goal and it is best to select equity oriented mutual funds for better returns.

If you want safe and low returns take Sukanya Samriddhi scheme. You can start investing yearly 12000 rupees in SSS for lower and risk free investment. To get aggressive returns for kids education, start investing in mutual funds in your kid’s account.

How to start investment for your child:

You can even you do a systematic investment plan (SIP) in the name of the minor. The debits for this account can come either from a designated bank account of the parent or child’s minor account. But you can’t withdraw from mutual fund account unless child turns 18. Otherwise you can start mutual fund account in your name and start investment for your kid.

You can start minor mutual fund account

If you wish to open mutual fund folio for your minor child, you will require two documents. First, age and date of birth proof of the minor. This can be either a birth certificate or a passport. The second important document is your relationship with the child. You can give a birth certificate, passport copy, etc which has your name as a parent. Once your minor attains the age of 18, he or she will have to go through the KYC process in his or her name.

Open a minor account in nationalized bank.
Open a account mutual funds aggregator platforms PayTM money, Kuvera or groww.
Select one Nifty index fund and one Nifty Junior index fund.
Link your bank account and Allocate 2500 rupees in each fund in monthly SIP.
Investment should be more than 12 years

Open a minor account in nationalized bank.
Open a account mutual funds aggregator platforms PayTM money, Kuvera or groww.
Select one Nifty index fund and one Nifty Junior index fund.
Link your bank account and Allocate 2500 rupees in each fund in monthly SIP.
Investment should be more than 12 years

In case you are looking for tax saving 80C investment, you can invest in ELSS mutual funds instead of Nifty Junior Index fund. It would give tax benefit as well as investment for your kid.

Nifty Index Fund: 50% (Any one in this list)

UTI Nifty Index Growth Direct fund (Expense ratio : 0.1%)
HDFC Index Nifty 50 Growth Direct Fund (Expense ratio : 0.1%)
ICICI Prudential Nifty Index Growth Direct fund(Expense ratio : 0.1%)
Nippon India Index Nifty Growth Direct fund(Expense ratio : 0.1%)
SBI Nifty Index Growth Direct Fund(Expense ratio : 0.29%)
IDFC Nifty Growth Direct fund(Expense ratio : 0.24%)

Nifty Junior Index / ELSS mutual fund: 50%

UTI Nifty Next 50 Index Growth Direct Plan
ICICI Prudential Nifty Next 50 Index Growth Direct Plan
DSP Nifty Next 50 Index Growth Direct Plan
L&T Nifty Next 50 Index Growth Direct Plan
Mirae Asset Tax Saver Growth Direct fund
Axis Long Term Equity Growth Direct Fund
UTI Long Term Equity Growth Direct Plan
IDFC Tax Advantage Growth Direct Plan

The action plan is, Monthly 5,000 rupees with 2 mutual funds for 20 years.

The action plan is, Monthly 5,000 rupees with 2 mutual funds for 20 years. It would take hardly 15 min to start mutual fund investment in mutual funds aggregator portals. Spend 15 min time to accumulate 80 Lakhs for your kids. Start early to become richer. Happy Investing.