Planning for Your Child's Education With Mutual Funds

A quality education can cost a fortune in 15 years — education inflation often runs 8–10%, faster than general inflation. Mutual funds, started early, are built for this.

Step 1: Estimate the future cost Take today's cost of the course and inflate it to the year your child will need it. The number will be big — that's the point of planning now.

Step 2: Start early, stay in equity With 10–18 years to go, equity funds (flexi-cap, index, or a children's fund) do the heavy lifting. Time smooths out volatility.

Step 3: De-risk as the deadline nears In the final 3–4 years before admission, gradually shift the corpus from equity to debt/hybrid so a market dip doesn't hit right when fees are due.

Step 4: Earmark it Keep this goal's investments separate so you're not tempted to use them for something else.

Tools - Goal planner — the monthly SIP for the target. - Discovery wizard — choose "Child Education" for a matched shortlist.

Solution-oriented children's funds exist too, but any well-chosen equity fund can do the job — compare on the explorer.