How much SIP is needed for child education?

It depends on your target. For ₹50 lakh college fund in 15 years: ₹9,906/month at 12% returns. For ₹1 crore (MBA/abroad): ₹19,819/month. Start early - even ₹5,000/month from birth grows to ₹75.8 lakh by age 18.

When should I start SIP for child education?

Start as soon as your child is born. With 18 years of compounding, even small amounts grow significantly. Starting at birth with ₹5,000/month can create ₹75+ lakh corpus by college age.

Which mutual fund is best for child education?

For long-term (10+ years), equity mutual funds like flexi-cap or large-cap funds work best. Consider child-specific funds like HDFC Children's Gift Fund or ICICI Prudential Child Care Fund which have built-in lock-ins until child turns 18.

SIP for Child Education: How Much Do You Need?

For ₹50 Lakh Education Fund in 15 Years

₹9,906/month

at 12% expected returns

Enough for Engineering/Medical College

Start early! A ₹10,000/month SIP started at your child's birth grows to ₹75.8 lakh by age 18. The power of compounding makes early investing incredibly powerful for education planning.

Education Costs in India (2026 Estimates)

Current costs with 10% annual inflation projection:

Education Type	Current Cost	In 15 Years	SIP Needed (15 yr)
Good School (Class 1-12)	₹15-25 Lakh	₹60-100 Lakh	₹12-20K/month
Engineering (IIT/NIT)	₹8-12 Lakh	₹30-50 Lakh	₹6-10K/month
Engineering (Private)	₹15-25 Lakh	₹60-100 Lakh	₹12-20K/month
Medical (Govt)	₹5-10 Lakh	₹20-40 Lakh	₹4-8K/month
Medical (Private)	₹50-80 Lakh	₹2-3 Crore	₹40-60K/month
MBA (IIM)	₹25-30 Lakh	₹1-1.2 Crore	₹20-24K/month
Study Abroad (US/UK)	₹40-60 Lakh	₹1.6-2.4 Crore	₹32-48K/month

Education Inflation: Education costs rise 10-12% annually in India - faster than general inflation. Start SIP early and use step-up to keep pace!

SIP Growth by Child's Age (Starting at Birth)

If you start ₹10,000/month SIP when your child is born:

Child's Age	Years Invested	Total Invested	Corpus Value (12%)
5 years (School starts)	5 years	₹6.0 Lakh	₹8.2 Lakh
10 years (Middle school)	10 years	₹12.0 Lakh	₹23.2 Lakh
15 years (Higher secondary)	15 years	₹18.0 Lakh	₹50.5 Lakh
18 years (College)	18 years	₹21.6 Lakh	₹75.8 Lakh
22 years (Masters/MBA)	22 years	₹26.4 Lakh	₹1.26 Crore

The Magic of Starting Early: ₹10,000/month for 18 years = ₹21.6 lakh invested, but grows to ₹75.8 lakh. That's ₹54 lakh in pure returns!

What If You Start Late?

Required monthly SIP to reach ₹50 lakh based on when you start:

Child's Current Age	Years to College (18)	Monthly SIP Needed	Total Investment
Newborn (0)	18 years	₹6,596/month	₹14.2 Lakh
3 years old	15 years	₹9,906/month	₹17.8 Lakh
6 years old	12 years	₹15,357/month	₹22.1 Lakh
10 years old	8 years	₹30,632/month	₹29.4 Lakh
13 years old	5 years	₹60,819/month	₹36.5 Lakh

Starting at birth vs age 10: You need nearly 5x more SIP amount! Early start = smaller monthly burden and larger corpus.

Recommended Education Fund Strategy

Birth to Age 5: Aggressive Growth

100% equity funds (large-cap or flexi-cap). Maximum time for compounding. Volatility doesn't matter with 15+ year horizon.

Age 6 to 12: Balanced Approach

70% equity, 30% debt. Start building stability as horizon shortens. Consider step-up SIP to increase contributions.

Age 13 to 16: Capital Preservation

50% equity, 50% debt. Gradually shift to safer options. Can't afford big losses with college approaching.

Age 17+: Safety First

20% equity, 80% debt/liquid. Move most corpus to safe instruments. Ready for redemption when fees are due.

Child Education Funds vs Regular SIP

Some mutual funds offer dedicated child education plans:

HDFC Children's Gift Fund: Solution-oriented fund with 5-year lock-in or until child turns 18
ICICI Prudential Child Care Fund: Gift and Study plans with lock-in periods
Axis Children's Gift Fund: Compulsory lock-in helps in disciplined investing

Our recommendation: Regular flexi-cap or large-cap funds offer better flexibility and similar returns. Use STP (Systematic Transfer Plan) as the goal approaches to shift to debt.

Step-Up SIP for Education: Beat Inflation

Education inflation is 10-12%/year. Use step-up SIP to keep pace:

Strategy	Starting SIP	Corpus in 15 Years
Regular SIP	₹10,000/month	₹50.5 Lakh
Step-Up 10%/year	₹10,000/month	₹79.4 Lakh
Step-Up 15%/year	₹10,000/month	₹98.2 Lakh

With 10% annual step-up, you invest more as your income grows, creating 57% more wealth!

Frequently Asked Questions

What's the best SIP amount for child education?

Rule of thumb: Save 10-15% of your income for child's education. For a specific goal, use our calculator: Divide your target by 500 (for 15 years at 12%) to get monthly SIP. For ₹50 lakh goal: ₹50,00,000 ÷ 505 = ₹9,900/month.

Should I choose child-specific mutual funds?

Not necessarily. Child funds have lock-ins which prevent withdrawal even in emergencies. Regular diversified equity funds with self-discipline offer similar returns with more flexibility. Set up auto-debit to ensure regularity.

What if I miss SIP payments?

Missing a few months won't significantly impact long-term goals. Most AMCs allow flexibility. However, consistent investing is key to reaching your target. Set up auto-debit from your salary account to avoid misses.

How to handle multiple children's education?

Start separate SIPs for each child based on their age and timeline. The older child needs a higher SIP due to shorter duration. Consider step-up SIP that increases as your income grows to manage multiple goals.

Is Sukanya Samriddhi Yojana better than SIP for daughter?

SSY offers guaranteed 8% tax-free returns with Section 80C benefit - excellent for risk-averse investors. However, equity SIP can potentially give 10-12% over 15+ years. Best strategy: Use SSY for ₹1.5 lakh (80C limit) + SIP for additional savings.