Higher education costs have historically risen faster than general prices, and the admission year does not move. An engineering seat, an MBBS course, or a master's degree abroad each carries a very different price tag, and the fee is usually due within a few weeks of the admission letter.
We help you estimate what the chosen course may cost when your child is ready, work out the monthly SIP needed, and choose fund categories to match the timeline. Two or three years before admission, we help you move the money step by step into debt funds, so a market fall in the final year does not disturb the plan.
Who it suits
- Parents of children under 12
- Families aiming for engineering or medicine
- Parents planning overseas studies
- NRI families saving for studies in India
How Child Education Planning works
- 1
Pick the likely course
We discuss likely paths, such as engineering, medicine or study abroad, and estimate today's cost including hostel, coaching and travel.
- 2
Project the future fee
We apply an assumed education inflation rate to estimate the amount needed in the admission year.
- 3
Start the SIP
We help you choose equity-oriented fund categories for the long years, with a monthly SIP sized to the goal.
- 4
Follow a glide path
From about three years before admission, we help you shift the money gradually into debt funds to protect what has been built.
- 5
Review each year
Marks, interests and costs change, so we check the target and the SIP every year and adjust if needed.
Why families choose it
Fees ready on time
The money is planned around the admission year, so you are not forced to take an expensive loan at the last minute.
Time does the work
Starting when the child is young gives the SIP many years to compound and keeps the monthly amount manageable.
Protection near the goal
The glide path to debt funds lowers the chance of a market fall hurting the fund in the final years.
One goal per child
Each child gets a separate plan and folio, so one goal does not quietly borrow from the other.
Flexible if plans change
Mutual fund money stays with you. If your child picks a different course, the fund can be used for that instead.
Things to know, and risks
- Planning on today's fee is the most common mistake, because course costs have historically risen faster than general inflation.
- Staying fully in equity until the admission year can hurt if markets fall just before the fees are due.
- Mixing the education fund with general savings makes it easy to spend on other needs along the way.
- Forgetting hostel, coaching, travel and living costs can leave a large gap, especially for studies abroad.
Tax treatment
Gains from equity-oriented funds held over 12 months are taxed at 12.5% above ₹1.25 lakh a year, and short-term gains at 20%. Debt funds bought on or after 1 April 2023 are taxed at your slab rate. Under the old tax regime, tuition fees paid may qualify under 80C. Tax rules change and section numbers may differ under the Income-tax Act, 2025, so confirm with your tax professional.
For families in Tirupati
Tirupati is an education town. Families here often want their children at the city's own universities and medical colleges, at engineering colleges across Andhra Pradesh and Tamil Nadu, or abroad for a master's. Many parents also set aside money for coaching in Class 11 and 12, which is a real cost in this region. We include that coaching period in the plan, so it does not eat into the main education fund.
Run the numbers
Education Calculator
Engineering, medicine, an MBA or a degree abroad all cost far more each year. This calculator takes today's course fee, grows it at an education inflation rate until your child's admission age, and shows the monthly SIP needed to build that amount at an assumed return. It gives parents a clear number to start with.
Frequently asked questions
How much should I invest for my child's education?
Start with today's cost of the course and project it forward. As an illustration, a ₹15 lakh course today becomes about ₹37.8 lakh in 12 years at an assumed 8% education inflation. At an assumed 12% return, that needs a monthly SIP of about ₹11,700.
When should I start saving for my child's higher education?
Ideally when your child is very young. A 10 to 15 year runway lets you use equity funds and keeps the SIP amount lower. Starting at age 12 is still worthwhile, but the monthly amount will be much higher and the fund mix more conservative.
Why move money to debt funds before admission?
It protects the money when you can no longer wait out a market fall. Shifting gradually two to three years before the fees are due means a late correction in equity markets is less likely to reduce the amount available.
Are child plans from insurance companies better than SIPs?
They serve a different purpose. Insurance-linked child plans combine cover and investment, often with higher costs and less flexibility. Many families prefer a term plan for protection and a separate mutual fund SIP for the education goal. We explain both so you can compare.
How do I plan for studying abroad?
Plan for a larger amount and include currency movement. Fees abroad are paid in foreign currency, so a weaker rupee raises the cost. Add living expenses, visa and travel, and keep a buffer. Some families also hold part of the corpus in international fund categories.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. This page is for general information and is not a recommendation to buy any specific product.
Last reviewed 12 Oct 2026.