The burgeoning cost of education has now made every parent cautious and proactive as it is the desire of every parent to provide the best of education they can. And the cost of education is likely to tread higher in the coming days.
So as soon as the child is born you need to begin savings or investments to have sufficient time frame for yourself so as to create a sizable amount for your child's education. SIP or Systematic Investment Plans are one such investment option which if remained invested in diligently as well as in a disciplined way will help you meet your this financial goal.
Let us see how?
Say your child is in the age-bracket of say 3-4 years then for his higher education you have good 10-15 years time to accumulate sizable wealth in case you start your investments right away in SIP of Rs. 5000 a month. More so, you will be able to benefit from the power of compounding.
Thus in 20 years time your investment corpus comes to be Rs. 12,000 and considering an expected return rate as 13%, your total payout on maturity shall be Rs 57,27,596. This is a handsome growth of Rs. 45,27,596 over and above your investment which shall well come in handy when your child is all set for his higher education.
The early planning with respect to your child's education through SIP that is a disciplined and systematic tool will also do away with your education loan needs upfront.