By Financial Bodha – Where Money Meets Mindfulness
Plan your child’s education with SIP in 2025! Learn how to start early, choose the right mutual funds, and grow a ₹50L+ corpus stress-free.
👶 Why You Should Start Early for Your Child’s Education
Did you know? The cost of higher education in India is increasing at an average rate of 10-12% per year.
Today, a top-tier MBA or medical degree can cost around ₹20–30 lakhs.
In 15 years, it might go up to ₹50–70 lakhs 😱
If you start late, that number might feel impossible. But if you start a SIP (Systematic Investment Plan) early, even with just ₹3,000/month — the results are magical ✨
💭 SIP = Systematic. Simple. Smart.
A SIP allows you to invest a fixed amount every month into a mutual fund of your choice.
Here’s why SIPs are perfect for child education planning:
- ✅ Long-term compounding
- ✅ Disciplined, stress-free investing
- ✅ Affordable (start with ₹500/month)
- ✅ Rupee Cost Averaging cushions market volatility
📊 SIP Magic: Let’s Do the Math
Let’s say you start a SIP when your child is 3 years old in 2025.
| SIP Amount | Time Period | Expected Returns (12% p.a.) | Final Corpus |
|---|---|---|---|
| ₹3,000/month | 15 years | ₹12.6 lakhs | ₹15.8 lakhs |
| ₹5,000/month | 15 years | ₹21 lakhs | ₹26.4 lakhs |
| ₹10,000/month | 15 years | ₹42 lakhs | ₹52.8 lakhs |
🧠 Pro tip: The earlier you start, the smaller the SIP you need.
🪙 Best Mutual Funds for Child Education SIPs (2025 Picks)
Choose Equity or Hybrid funds with a good 5+ year track record:
| Fund Name | Category | 5Y Returns | Why Pick It |
|---|---|---|---|
| Axis Long Term Equity | ELSS | ~13% | Tax-saving + long-term focused |
| Mirae Asset Emerging Bluechip | Large & Mid Cap | ~17% | Great for 10+ year goals |
| HDFC Hybrid Equity Fund | Hybrid | ~12% | Lower risk, decent returns |
| UTI Nifty Index Fund | Index | ~12.5% | Low cost, simple & steady |
📌 Tip: Rebalance to debt funds 3–4 years before goal.
🧠 Financial Bodha’s Tips for Parents
- ✅ Don’t stop SIP during market crashes — they actually help build more units
- ✅ Review SIPs once a year (not every month)
- ✅ Create a separate goal for each child
- ✅ Use goal-based names like “Anaya’s Education SIP” to stay emotionally committed
- ✅ Increase SIP amount by 10% every year (Step-Up SIP)
✍️ Final Thoughts from Financial Bodha
Planning for your child’s education shouldn’t feel overwhelming.
Start early. Start small. Stay consistent.
Your ₹5,000/month SIP today can create a confident, educated future for your child tomorrow 🎓💙
Use Platform Groww for best SIP plans. Download now
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