How to create an education fund of Rs 1 crore for children in 10 years, this is the way

In today’s time, the cost of higher education of children is increasing rapidly. Building a strong education fund not only secures the future of the child, but also reduces the financial burden of the parents. Experts say that if planning is done at the right time and investments are made wisely, it is possible to create an education fund of Rs 1 crore in 10 years.

To build an education fund, the most important thing is disciplined investment and choosing the right financial products for the long term. Be it a Systematic Investment Plan (SIP) of mutual funds, or judicious investment in the stock market, by using all the options properly, you can ensure a bright future for your child.

How to create a fund of 1 crore?
A monthly SIP is a good option to build an education fund of Rs 1 crore. For example, if you invest ₹25,000 every month in SIP and earn an average annual return of 12%, you can easily achieve this goal in 10 years. The sooner you start, the more you will benefit from compounding.

Investing not only in SIP, but also in other options like Public Provident Fund (PPF), National Pension System (NPS), and Unit-Linked Investment Plan (ULIP) will give you diversification and protection.

Take inflation into account
The cost of education is increasing by 8-10% every year. Therefore, it is very important to keep inflation in mind while investing. For this, you can opt for schemes that give high returns in the long run and retain the real value of your funds.

Things to keep in mind while investing

• Set goals: The goal of an education fund should be clear.

• Understand risk: Choose your investment options according to your risk appetite.

• Long Term Investment: Long term investment gives better returns.

• Diversify your portfolio: Invest in different schemes to reduce risk.