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How to plan for your children's education, corpus calculation, and investment options — a guide.
Published by The Retail Trader · AUG 05, 2026 · Features
How to plan for your children's education, corpus calculation, and investment options — a guide.
Today the fees for a good college are ₹20-50 lakh. After 15-20 years they could be ₹1-2 crore. Plan from now, or it will be very hard later.
Keep these five points in mind:
• Engineering (IIT) — Current Cost: ₹10-15 lakh, Cost After 15 Years (8% inflation): ₹32-48 lakh
• MBA (IIM) — Current Cost: ₹20-30 lakh, Cost After 15 Years (8% inflation): ₹64-96 lakh
• Medical (AIIMS) — Current Cost: ₹5-10 lakh, Cost After 15 Years (8% inflation): ₹16-32 lakh
• MS (USA) — Current Cost: ₹50 lakh-1 Cr, Cost After 15 Years (8% inflation): ₹1.6-3.2 Cr
• Undergraduate (Private) — Current Cost: ₹15-25 lakh, Cost After 15 Years (8% inflation): ₹48-80 lakh
Keep these five points in mind:
• SIP in Equity MF — Returns: 12-15%, Risk: Medium, Best For: Long-term (10+ years)
• PPF — Returns: 7.1%, Risk: Very Low, Best For: Safe, 15-year lock-in
• Sukanya Samriddhi — Returns: 8.2%, Risk: Very Low, Best For: Girl child (0-10 years)
• SSY + SIP combo — Returns: 8-12%, Risk: Low-Medium, Best For: Balanced approach
• Child Plan (ULIP) — Returns: 8-10%, Risk: Medium, Best For: Avoid (expensive)
Step 1: Calculate Corpus:
• Current cost: ₹20 lakh (engineering)
• Inflation: 8%
• Years to goal: 15
• Future cost: ₹63.5 lakh
Step 2: Start SIP:
• ₹63.5 lakh target, 15 years, 12% returns
• Monthly SIP needed: ₹14,500
Increase it by 10% every year. Start at ₹14,500, next year ₹16,000.
Keep these five points in mind:
• Who — Girl child 0-10 years
• Interest — 8.2% (govt-backed)
• Lock-in — 21 years (partial at 18)
• Max deposit — ₹1.5 lakh/year
• Tax benefit — 80C + Interest tax-free
Best for: Girl child education + marriage fund.
"We'll think about it in 10 years" — compound interest needs time.
ULIP child plans are expensive. Term insurance + SIP is better.
₹20 lakh today will be ₹64 lakh after 15 years. Factor in inflation.
An education loan is the last option. Save first.
Keep these points in mind:
• 📌 EDUCATION PLANNING
• COST TODAY:
• 📊 Engineering: ₹10-15L → ₹32-48L (15 yrs)
• 📊 MBA: ₹20-30L → ₹64-96L
• 📊 MS USA: ₹50L-1Cr → ₹1.6-3.2Cr
• STRATEGY:
• 📊 SIP in Equity MF — 12-15% returns
• 📊 PPF — Safe, 7.1%
• 📊 Sukanya Samriddhi — Girl child, 8.2%
• SIP CALCULATION:
• 📊 ₹20L target, 15 years, 12%
• 📊 Monthly SIP: ₹14,500
• 📊 Increase 10% yearly
• AVOID:
• ❌ Late start
• ❌ Only insurance child plans
• ❌ No inflation adjustment
• ❌ Education loan as first option
• GIRL CHILD:
• 📊 Sukanya Samriddhi — 8.2%, tax-free
• 📊 ₹1.5L/year max, 21-year lock-in
Keep these points in mind:
• SIP vs Lump Sum | Financial Planning | Mutual Fund Types
The Retail Trader — educational market analysis. Not investment advice.
This article is educational only — no buy or sell recommendation, no claim of guaranteed returns, and no advisory. Rules, rates and mechanics change from time to time at the exchange, SEBI and RBI, so verify every number yourself with your broker or an official source.