Friday, December 8, 2017

Children Education Planning

Children Education Plans:

Let us discuss about Child Education Plan (Graduation) in this post.

Current Cost of Desired Education (Engineering) : 10,00,000/- 
Current Age of Child : 5 Years
Age of Child when Corpus is Required: 18 Years
Expected Rate of Returns: 12% p.a.
Inflation : 8% p.a.


With some planning, you can provide your child the best education – the very best. Here’s the calculation that lets you understand what’s in store financially, to fund your child’s Graduation (Engineering) that currently costs Rs.10,00,000/-

If the rate of inflation is 8 % p.a. the cost of your child’s education when they turn 18 in 13 years would be Rs. 27,19,624/-. 

You will need to invest a lump sum of Rs. 6,23,266/- or make a monthly investment of       Rs. 7,307/- at an annual return of 12 %, to successfully meet your child’s education cost.

Suggested Portfolio:
Mix of Large Cap, Midcap and Multicap Funds.

No comments:

Post a Comment

Interesting Quotes: 29 Dec 2017

1. Loss aversion causes investors to shy away from stocks; therefore, stocks earned very large returns relative to risk free government se...