SIP: Save 25 lakhs in a few years by paying 5000 for your child’s education Every Month.

Because of the ever growing inflation, the cost of formal education has increased significantly with many schools now charging a fee in the lakhs, therefore parents are recommended to start saving for tuition as kids are born this way they get an advantage. A wise strategy for an education plan is starting with Rs 5,000 each month it takes a few years but can net you over 25 lakh rupees. The managed mutual funds that come with SIP investment plans on the other hand are risky yet beneficial in the long haul. Here is a step by step guide:

First of all, you’ll need help from financial experts to help set up compound investment plans, once they have set up the SIP you need to save 5000 each month to be able to afford your child’s tuition.

You can earn an investment return of approximately 12% on your Rs 5,000 monthly investment over the next 15 years, so you need to keep investing that amount for the given period.

If you are expecting approximately 12 percent returns every year, in 15 years this amount can grow to Rs 25,22,880 which should be more than enough for your children’s higher education. With this amount your children can get admission in a world-class college.