How to save ₹50 lakh for education | Fusion - WeRIndia

owadays, education is very expensive. It is mandatory to save a huge amount if you want your child to be educated in a reputed institute.

In order to give your child good education, you need to save a certain amount from the very beginning of your child’s birth.

The earlier you save, the higher your returns would be.

Here are certain schemes and ways to save at least ₹50 lakh as corpus fund for your child’s education when he or she attains the age of 18 years.

You can invest ₹6,550 in equity or ₹10,400 in debt if you start investing at your child birth. These are monthly investments for a period of 18 years. If you want to invest in a mix of both equity and debt, then you have to invest ₹8,300 per month.

The ideal portfolio is 90 percent of equity and 10 percent of debt. Choose large and mid-cap funds or equity multi-cap fund to invest in equity. For debt funds choose PPF. You can even choose Sukanya Samriddhi Yojana for your daughter.

If you start investing for your child of 3 years, you have to save for 15 years as follows:

₹10,000 in equity or ₹14,400 in debt or ₹12,000 in the mix of equity and debt. 80 percent of equity and 20 percent of debt is ideal portfolio.

Choose ULIPs and Equity Aggressive Hybrid fund to invest in equity and PPF for debt investment.

If your child attains the age of 6 years and you start investing since then, you have to invest as follows:

₹15,600 in equity or ₹20,700 in debt or ₹18,000 in the mix of equity and debt. 70 percent of equity and 30 percent of debt is ideal portfolio.

Choose ULIPs, ELSS fund and Equity Aggressive Hybrid fund to invest in equity and Sovereign Gold Bond for debt investment.

Invest ₹25,700 in equity or ₹31,600 in debt or ₹28,500 in the mix of equity and debt if you start investment when your child is 9 years old. Ideal portfolio is 50 percent of both equity and debt.

Choose Equity Balanced Hybrid fund, ELSS fund and Sovereign Gold Bond.

Invest ₹47,400 in equity or ₹54,000 in debt or ₹50,600 in the mix of equity and debt if you start investment when your child is 12 years old. Ideal portfolio is 30 and 70 percent of both equity and debt.

Choose Hybrid Conservative Debt fund and Fixed Deposit.

If your child is 15 years old and you start investing, then invest ₹1.15 lakh in equity or ₹1.23 lakh in debt or ₹1.19 in the mix of equity and debt. Debt funds should be 90 percent and equity should be 10 percent in your portfolio.

Hybrid Conservative Debt fund, fixed deposits, recurring deposits and short-term debt funds are ideal to invest.

The above calculations are given assuming that equity funds yield 12%, debt funds yield 8% and mix of equity and debt yield 10% returns.

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