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Make your kid’s future safe and secure: Mutual Fund is the BEST option

When we make education a priority, we give our children opportunities. As parents, we always want to provide the best education to children, so we must sacrifice today to secure their future. One of the best ways to help them have the best teaching and give them every learning opportunity is to invest in a Mutual Fund. Start SIP (Systematic Investment Plan) to fulfil their educational dreams at your earliest convenience.

Mutual funds are an investment vehicle. Fund Managers of every mutual fund scheme invest investors’ money in various securities, such as stocks, bonds, and debt. The benefits of investing in mutual funds include professional money management, diversification, and risk management.

There is a simple process when we talk about investing for children in mutual funds. You can open a Demat account to support you or connect with a financial advisor to handle your investments professionally.

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Why is Investment in children’s future important?

Child education plans help children and their guardians focus on careers without worrying about finances. Life is uncertain. Thus, in the guardian’s absence, this plan will also take care of the child’s plans. Nowadays, there are a plethora of schemes that will generate sufficient returns to help your child meet his future needs to pursue whichever field they desire.

Here let’s understand why it is necessary to start investing in children through some well-known proverbs.

  1. Slow and steady wins the race

Mutual funds powered by various advantages can help you build wealth and realize long-term financial goals. As an investment avenue, mutual fund schemes can make you a winner in life. You have to follow the proper financial discipline, and by the slow and steady process, you can reach new heights of fulfilling financial goals.

  1. Actions Speak Louder Than Words

Sometimes we are satisfied by just saying that we will plan this much for the future, save this much, and invest this much, but we will be able to secure the end of our children only when we implement the plan in the form of action. Mutual Fund is the easy option when you want to start investing rather than wasting time thinking of the best investment option.

  1. Adversity and Loss Make a Man Wise

We gain wisdom faster under challenging times than in prosperous times. It is like after losing money in investments, we know which assets to avoid. It is rightly said adversity and loss make a man wise. Thus, if you are investing adversely, planning for your child’s future through Investment in mutual funds is advisable.

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  1. A Journey of a Thousand Miles Begins With a Single Step

What’s required is the will to invest. An idea about one’s monthly expenditure is the first step in understanding how much one can invest. The amount available over and above the monthly spending can be the starting point for Investment. After this budgeting, you can start investing in your kid’s educational journey.

So, are you ready to invest in your child’s education?

Let’s have a look at examples which will explain to you the calculation of how much money to collect for a child’s education in simple language.

  1. If you are planning for a newborn baby or before baby’s birth
Monthly SIP Investment Period Expected Return Total Amount Invested Wealth Generated
1,000 18 12% ₹ 2,16,000 ₹ 5,49,439


  1. If you are planning for child’s college education
Educational Field 2022 – Current Cost 2037 – After 15 years cost with Inflation (10%) Monthly SIP needed
MBA 23 Lakh 96.07 Lakh ₹ 19,231
Engineering 9.12 Lakh 38.09 Lakh ₹ 7,626
Medical 70.88 Lakh 2.96 crore ₹ 59,271


  1. If you are planning till child’s retirement age (60 Years)
Monthly SIP Investment Period Expected Return Total Amount Invested Wealth Generated
3,000 60 15% 21.60 Lakh 186.19 Crore


  1. Calculation of Loan Vs. SIP (If you want corpus at the age of 20 year)
Loan At the 20 year For 5 Years Targeted Amount 25 Lakh EMI ₹ 53,797 Interest Rate 10.55%
SIP At the 10 year For 10 Years Targeted Amount 25 Lakh SIP ₹ 11,159 Expected Return 12%


Disclaimer: Two options are available if you want to generate funds for your child’s education. The first option is a loan. You can take a loan at the age of 20 for 5 years from the child’s birth. Another option is SIP, which you can start at the age of 10 for 10 years for higher studies of the child from the age of 10 years. Choose SIP against an education loan for your kids’ education to create an enormous corpus, which will also give you good returns.

Bottom Lines

As you can see, investing through SIP in Mutual Funds would ensure that your child gets the money at specified intervals. As a parent, it will ensure that your child’s future needs are met and they can fulfil their educational dreams as planned by you. Investing in a SIP would be a wise step for every parent who wishes financial security for their child.

Make this children’s day meaningful by starting SIP for your little one!