Secure Your Child's Bright Future – Today
Education costs are rising faster than inflation. Start planning now to ensure your child's dreams don't face financial barriers. Our comprehensive education planning solutions help you build the corpus needed for engineering, medical, MBA, or any professional course.
Education Inflation in India (2025)
Why Early Planning is Critical
Annual Education Inflation
Education costs rise 2x faster than general inflation, doubling every 6-7 years
Average Course Cost Range
Engineering, Medical, MBA courses can cost ₹50L to ₹2 Crores in tier-1 cities
Years to Plan
Starting early gives you time to build corpus through systematic investing
Important: Education inflation is significantly higher than general inflation
While general inflation in India is around 6-7%, education costs rise at 10-12% annually. This means a course costing ₹20L today will cost approximately ₹1.2-1.5 Crores in 15 years. This is why goal-based planning with equity investments is essential to beat education inflation.
Education Cost Calculator
Calculate Your Child's Education Cost
Adjust the sliders to see projected costs and required monthly SIP
Projected Cost in 2035
₹56,78,842
Monthly SIP Required
₹69,534
Projected Cost in 2040
₹95,69,179
Monthly SIP Required
₹41,598
Projected Cost in 2045
₹1,61,24,623
Monthly SIP Required
₹32,276
Investment Strategy
Recommended Model Portfolios
Asset allocation recommendations based on your risk profile and time horizon
conservative Portfolio
9% Expected Returnmoderate Portfolio
11% Expected Returnaggressive Portfolio
12% Expected ReturnRisk Level Explanation
Conservative: Suitable for risk-averse investors or when goal is within 5-7 years. Higher debt allocation provides stability.
Moderate: Balanced approach for most investors with 10-15 year horizons. Optimal balance between growth and stability.
Aggressive: For long-term goals (15+ years) and risk-tolerant investors. Higher equity allocation maximizes growth potential to beat education inflation.
Success Story
Real Client Success
The Patel Family, Ahmedabad
When Mr. and Mrs. Patel approached us in 2018, their daughter was 8 years old, and they wanted to plan for her engineering education. They had no specific plan and were investing randomly in various instruments.
Our Solution: We created a goal-based education plan targeting ₹1.2 Crores for a tier-1 engineering college in 2030. We recommended a moderate portfolio with 70% equity allocation and a monthly SIP of ₹25,000.
Result: By 2024, their corpus had grown to ₹18L from systematic investing, and they're on track to achieve their goal. The disciplined approach and regular reviews have given them confidence and peace of mind.
Comparison
Goal-Based SIP vs Traditional RD/FD vs Lumpsum
| Aspect | Goal-Based SIP | Traditional RD/FD | Lumpsum |
|---|---|---|---|
| Goal Clarity | Clear target corpus with specific timeline | No specific target, random investing | Limited flexibility, timing risk |
| Discipline | Systematic SIP aligned to goal timeline | Irregular investments, often missed | Limited flexibility, timing risk |
| Asset Allocation | Optimized based on time horizon | No strategic allocation | Limited flexibility, timing risk |
| Probability of Achievement | 85-90% with disciplined approach | 40-50% due to lack of focus | Limited flexibility, timing risk |
| Tax Benefits | Section 80C, tax-efficient withdrawals | Limited tax planning | Limited flexibility, timing risk |
| Emotional Decisions | Reduced, goal-focused approach | High, market-driven decisions | Limited flexibility, timing risk |
Tax Benefits
Tax Benefits Under Section 80C & Children-Specific Options
Section 80C Benefits
- ELSS Mutual Funds: Up to ₹1.5L deduction, 3-year lock-in
- PPF: Tax-free returns, 15-year tenure
- Child Education Plans: Tax-efficient growth
Children-Specific Options
- Sukanya Samriddhi Yojana (for daughters): 7.6% interest, tax benefits
- Child Mutual Funds: Long-term wealth creation
- Education Savings Plans: Goal-aligned investments
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Related Goals
Frequently Asked Questions
Common Questions
Education inflation in India typically ranges between 10-12% annually, significantly higher than general inflation (6-7%). This means education costs double approximately every 6-7 years. For professional courses like engineering and medical, the inflation can be even higher at 12-15% per year. It's crucial to account for this when planning your child's education fund.
The amount depends on several factors: your child's current age, the type of course (engineering, medical, MBA, etc.), location (tier 1/2/3 city or overseas), and the inflation rate. For example, a 4-year engineering course in a tier-1 city that costs ₹20L today could cost ₹1.2-1.5 Crores in 15 years at 11% education inflation. Use our calculator above to get personalized estimates based on your specific situation.
You can claim tax benefits under Section 80C for investments in ELSS mutual funds, PPF, Sukanya Samriddhi Yojana (for daughters), and other eligible instruments up to ₹1.5L per year. Additionally, Section 80D allows deductions for health insurance premiums. For education expenses, Section 10(14) provides tax exemption on education allowance. Child-specific mutual funds and education savings plans also offer tax-efficient growth.
The earlier, the better! Starting when your child is born or in early childhood gives you 15-18 years to accumulate the required corpus. This allows you to invest smaller monthly amounts and benefit from compounding. However, it's never too late to start. Even if you begin when your child is 10-12 years old, systematic investing can still help you build a substantial education fund.
For long-term education goals (10+ years), we recommend an equity-heavy portfolio (70-80% equity, 20-30% debt) to beat education inflation. As the goal approaches (within 3-5 years), gradually shift to more conservative allocation (40-50% equity, 50-60% debt) to protect the corpus. Our model portfolios above provide specific allocation recommendations based on your risk profile and time horizon.
